ABA Banking Journal
No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
SUBSCRIBE
ABA Banking Journal
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
No Result
View All Result
No Result
View All Result
ADVERTISEMENT
Home Economy

Nichols: Durbin Amendment Costs Consumers ‘Tens of Billions’ in Losses

April 25, 2017
Reading Time: 1 min read

As representatives from the retail industry hit Capitol Hill this week to lobby members of Congress, American Bankers Association President and CEO Rob Nichols called on lawmakers to repeal the Durbin Amendment, which imposed government price controls on debit card interchange. In an op-ed published in The Hill newspaper today, Nichols noted that the amendment — an eleventh-hour addition to the Dodd-Frank Act — “represents a loss of tens of billions of dollars in consumer value.”

The controversial amendment has had negative consequences for consumers, small businesses and the banks that serve them, Nichols said. Since its passage, it has caused many banks to limit various product offerings, such as free checking accounts, and limited transaction processing choices for small businesses. At the same time, he added, retailers have reneged on their promise to pass along lower prices to their customers in exchange for lower interchange fees.

“Retail stores would howl if Congress capped the prices of the food or clothing or equipment they sell,” Nichols wrote. “It’s no different in financial services. Bankers strongly support policies that promote a vibrant retail sector, but onerous price caps and regulations hurt consumers more than they help grow the economy… Simply put, the Durbin amendment extracts a high price from many for the benefit of a few.”

ADVERTISEMENT
Tags: Dodd-FrankInterchangePayments system
ShareTweetPin

Author

Monica C. Meinert

Monica C. Meinert

Monica C. Meinert is a senior editor at the ABA Banking Journal and VP for executive communications at the American Bankers Association.

Related Posts

ABA urges ‘same risk, same regulation’ for digital assets

Proposed amendment would add Credit Card Competition Act to Senate stablecoin bill

Newsbytes
May 20, 2025

Sen. Roger Marshall (R-Kan.) has filed an amendment to add credit card network routing mandates to an unrelated bill establishing a regulatory framework for payment stablecoins.

FDIC withdraws proposed rules on brokered deposits, corporate governance, executive pay

FDIC rescinds 2024 bank merger policy

Newsbytes
May 20, 2025

The FDIC board unanimously voted to rescind a 2024 statement on bank mergers that expanded the factors taken under consideration when the agency reviews merger applications.

FDIC says banks need to correctly report uninsured deposits

FDIC provides update on Deposit Insurance Fund restoration

Compliance and Risk
May 20, 2025

DIF reserve ratio remains on track to reach the statutory minimum of 1.35% by year's end. Also, FDIC will explore changing how it calculates the DIF's exposure to losses.

ABA, associations urge lawmakers to finalize deal on debt ceiling

Resolution to overturn OCC bank merger rule clears House

Community Banking
May 20, 2025

The House voted in favor of a Senate resolution to overturn a 2024 final rule that changed how the OCC reviews proposed bank mergers. The legislation heads to President Trump for his signature.

ABA urges House lawmakers to support several banking-related bills

ABA urges House lawmakers to support several banking-related bills

Newsbytes
May 20, 2025

ABA expressed support for several bills under consideration by the House Financial Services Committee, including legislation on regulatory tailoring, reputational risk and bank merger applications.

OCC sees need for regulatory reform in bank merger process

First National Bank in South Dakota to buy Wyoming Bank & Trust

Community Banking
May 20, 2025

First National Bank in Fort Pierre, South Dakota, has agreed to buy Wyoming Bank & Trust in Cheyenne.

NEWSBYTES

Proposed amendment would add Credit Card Competition Act to Senate stablecoin bill

May 20, 2025

FDIC rescinds 2024 bank merger policy

May 20, 2025

FDIC provides update on Deposit Insurance Fund restoration

May 20, 2025

SPONSORED CONTENT

Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

April 25, 2025
Outsourcing: Getting to Go/No-Go

Outsourcing: Getting to Go/No-Go

April 5, 2025
Six Payments Trends Driving the Future of Transactions

Six Payments Trends Driving the Future of Transactions

March 15, 2025
AI for Banks: A Starter Guide for Community and Regional Institutions

AI for Banks: A Starter Guide for Community and Regional Institutions

March 1, 2025

PODCASTS

Podcast: Accelerating banking for quick-service restaurants

May 8, 2025

How a Georgia community bank supports government-guaranteed lending nationwide

May 1, 2025

Podcast: Quantum computing’s shakeup in payments, cybersecurity

April 24, 2025
ADVERTISEMENT

American Bankers Association
1333 New Hampshire Ave NW
Washington, DC 20036
1-800-BANKERS (800-226-5377)
www.aba.com
About ABA
Privacy Policy
Contact ABA

ABA Banking Journal
About ABA Banking Journal
Media Kit
Advertising
Subscribe

© 2025 American Bankers Association. All rights reserved.

No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive

© 2025 American Bankers Association. All rights reserved.