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One year ago today, Dick Durbin’s amendment added to the damage Dodd-Frank is doing. Now consumers are to be hit even harder.
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What about lower retail prices retailers promised if these price controls went through? Those have yet to materialize, and it looks like the big retail chains are mostly pocketing the $8 billion windfall they have received. While some retailers claim the Durbin Amendment has helped them “hold the line” against price increases. a new survey by the Electronic Payments Coalition — a group representing payment card networks, banks, and credit unions of all sizes — showed consumers paying 1.5 percent more on average for retail goods.
While an economic study holding factors such as inflation constant is needed to truly judge whether Durbin has brought any savings to consumers, the burden is on the retailers reaping the windfall to prove consumer benefits. They have failed to do so thus far.
But it seems the big retail chains are too busy lobbying Congress to bring Durbin-like price controls to credit cards as well as debit cards. So if you like the new checking and ATM fees, you’re going to love the reductions in credit card rewards and return of annual fees on your credit cards if retailers again get their way in further shifting the cost of credit card processing to consumers. This is exactly what happened when the Australian government put price controls on credit card interchange fees, again with no corresponding savings to consumers, studies have found.
If however, you don’t like new fees and you don’t like paying Walmart and Home Depot’s share of credit and debit card processing, push for repeal of the Durbin Amendment through bills like the bipartisan “Consumer Debit Card Protection Act” (HR 3156), sponsored by Reps. Jason Chaffetz (R-Utah) and Bill Owens (D-N.Y). And get informed about other costly mandates from and constitutional defects of Dodd-Frank, which as the American Enterprise Institute’s Peter Wallison rightly pointed out in TAS last week, “may be the primary reason the economy continues to struggle.”
A man of faith in a godless age is hitting Americans where it hurts.
Mr. and Mrs. American Spectator Reader, let P.J. O’Rourke talk sense to your kids.
In Britain, defending your property can get you life.
It won’t take long for conservatives to scratch this presidential wannabe off their 2008 scorecard.
Was the President done in by the economy, or by the politics of the economy?