Electronic Payments Coalition |
EPC Applauds Zywicki Testimony Assessing Negative Impact of the Durbin Amendment on Consumers
A statement from Molly Wilkinson, executive director of the Electronic Payments Coalition (EPC) praising testimony from Professor Todd Zywicki at the U.S. Senate Committee on Banking, Housing, & Urban Affairs hearing today: Price controls on debit card transactions, which were enacted through the Durbin Amendment, have created a hand out for retailers that so far has reached $36 billion and continues to rise each year. Professor Zywicki’s testimony made this padding by large retailers evident by noting, “While the Durbin Amendment has saved big box retailers billions of dollars per year in interchange fees, there is no evidence to date that those cost savings have been passed on to retail consumers. In short, consumers are paying higher fees for bank accounts and receiving no rebates from retailers. Indeed, unlike big box retailers that have received multi-billion dollar windfalls, many small retailers are actually paying higher merchant discount rates than before the Durbin Amendment’s enactment.” Retailers promised to pass this sum along to their customers in the form of lower prices but customers are still waiting to see a difference. Zywicki’s insightful testimony supports EPC’s mission of promoting consumer convenience, innovation, and competition. As he states, “the presence of the