-
Payback Time
February 14, 2013 | 68 comments
-
Community Banks Face a Regulatory Cliff
November 21, 2012 | 120 comments
-
Obamatax Apologists
June 29, 2012 | 146 comments
-
How Senate Dems and Scott Brown Failed ‘Maxine Waters’ Test
March 28, 2012 | 34 comments
-
My NASCAR Buddy
March 21, 2012 | 27 comments
A Further Perspective
Happy Durbin Day
One year ago today, Dick Durbin’s amendment added to the damage Dodd-Frank is doing. Now consumers are to be hit even harder.
(Page 2 of 2)
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.”
About the Author
John Berlau is Senior Fellow for Finance and Access to Capital at the Competitive Enterprise Institute and blogs at OpenMarket.org.
Letter to the Editor View all comments (8) | Leave a comment
More Articles by John Berlau
More Articles From A Further Perspective
http://spectator.org/archives/2012/10/01/happy-durbin-day
Follow us:
ADVERTISEMENT
SPONSORED LINKS
FLASHBACK TO: 1995
-
Pope Culture
A man of faith in a godless age is hitting Americans where it hurts.
-
Why the GOP Does Not, Like, Totally Suck
Mr. and Mrs. American Spectator Reader, let P.J. O’Rourke talk sense to your kids.
-
Dames at Sea
-
In the Absence of Guns
In Britain, defending your property can get you life.
-
The Metaphysical Martini
-
Counting the Costs of Clintonism
The debacle of this president’s administration is both a cause and a symptom of the decline of American values. Unless Congress impeaches him, that decline will go on unchecked. An eminent jurist surveys the damage and assesses the chances for the recovery of our culture.
-
Chuck McHagel
It won’t take long for conservatives to scratch this presidential wannabe off their 2008 scorecard.
-
The Legacy of Old John and Mother Fresh-Roasted
-
It’s the Best Time of the Year
The American Christmas, like the songs that celebrate it, makes room for everybody under the rainbow. Is that why so many people seem to be hostile to it?
-
The Bush Crack-Up
Was the President done in by the economy, or by the politics of the economy?
Clip of the Day
ADVERTISEMENT
TLP| 10.1.12 @ 7:15AM
In pleading his case for lollipops and teddy bears, for AL QAIDA PRISONERS, held at Guantanamo Bay, Senator Cocksckr Piece A Sh*t said this, in describing their Horrible Treatment by the People that All Democrats HATE, with every Molecule of their being - The United States Servicemen and Women: "If I told you this (The lack of Massages, Foot Rubs, and Magazines full of Naked Goats, and Fully Clothed Little Girls being Stoned to Death - or whatever the Fck it was - and who gives a Fck?) you would most certainly believe that this had been done by NAZIS, Soviets in their GULAGS, or some Mad Regime - Pol Pot or others - that had no concern about "Human Beings" Sadly, that is not the case. This was the action of Americans in the treatment of their Prisoners."
How is it possible, that this Piece of FCKNG FILTH is still alive?
I'm just saying.
Pecos Pete| 10.1.12 @ 7:16AM
Dick Durbin is a senator from Illinois. Enough said?
The Avenger| 10.1.12 @ 7:29AM
I can hardly wait till the government takes over healthcare. They did such a fine job on this fiasco.
chuck| 10.1.12 @ 8:28AM
WTF is wrong with these idiots from Illinois that they elect people like Durbin and Obama as there Senators?
Oh yeah......they gave us Carol Mosely Braun at one time.
Save the Union.....Expel Illinois and California!
Occam's Tool| 10.1.12 @ 6:15PM
Liberals are morons. When I turned 18, I left Illinois. After I got my psychiatric training, I left California. I'm glad I have never lived in either place ever again.
PolishKnight| 10.1.12 @ 9:56AM
Credit card rewards are basically a "kickback" to consumers from the taxes that credit card companies levy on retailers. One would think conservatives would be against this. The "free" plane flight you get is based upon the retailer paying high fees for transactions and, of course, passing them onto consumers.
Perhaps the old American Express card model was the best. You paid a fee, about $100 in today's money, but the merchants didn't have to pay any transaction fees and they LOVED the old card. It meant protection for them from getting robbed of their payroll at the nights' end and consumers enjoyed protection as well. Win-win for all concerned.
oldeham| 10.1.12 @ 10:17AM
Go ahead - increase fees.
Go ahead - increase taxes.
My disposable income keeps going down.
My support the the economy keeps going down.
More empty store fronts in the malls.
More people in the unemployment lines.
Go ahead - keep it up.
Pecos Pete| 10.1.12 @ 7:50PM
oldeham: You got it. Now if only more people would get it.