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 Newsbytes

Financial Groups Call for Repeal of Durbin Amendment in Letter to Fed

February 2, 2022
Reading Time: 2 mins read

In a letter to the Federal Reserve yesterday, a group of six financial trade associations—including the American Bankers Association and the Independent Community Bankers of America—described the ongoing harm that the Durbin Amendment has caused to consumers and community banks and called for its repeal and expressed concerns about the risks from current and potential future proposals to change Regulation II (Durbin’s implementing regulation). The Fed last year proposed to change Reg II’s routing provision to mandate that banks provide at least two unaffiliated networks when processing card-not-present purchases (such as internet transactions) and to accept novel transaction types like ‘PINless’ that may be riskier.

The groups highlighted data showing that Durbin’s routing provision (which applies to all banks) has reduced revenue even at community banks that were nominally “exempt” from the law’s rate cap provisions. They pointed out that “lowering the interchange fee cap would drive small and medium-volume card issuers out of the industry, which would have negative impacts on both competition and consumers in the long run.”

In addition, the groups critiqued the methodology that the Federal Reserve uses to measure the cost of debit card transactions, honing in on the agency’s request for comment on the quality of its information collection practices. The groups cited nearly a dozen sources of debit card costs borne by issuers that the Fed does not take into account when determining allowable interchange fees. All of these factors have led to quantifiable consumer harm that stands in the billions.

In light of merchant requests that the Federal Reserve reinterpret Durbin and make its rules stricter on banks, the group also warned that “further adjustments, ostensibly to refine the implementation of Durbin’s mandates, are likely to have additional and unpredictable distortionary market effects and exacerbate the damage done by existing rules.” The groups added that “demands to reopen Regulation II are premature and motivated by short-term and parochial economic interest,” and called on the Fed to “report to Congress a conclusion that the Durbin Amendment has failed to achieve its stated goals,” and “recommend its speedy repeal.”

ADVERTISEMENT
Tags: Debit cardsInterchangePayments
ShareTweetPin

Related Posts

ABA donates to Texas flood relief efforts, urges bankers to contribute

ABA donates to Texas flood relief efforts, urges bankers to contribute

Community Banking
July 10, 2025

ABA will donate $10,000 to Texas Bankers Foundation to assist with immediate disaster response and recovery following the recent catastrophic flooding in Central Texas.

Mortgage rates fall

Mortgage rates rise

Economy
July 10, 2025

The rate for a 30-year fixed-rate mortgage was 6.72% this week. The rate for a 15-year fixed-rate mortgage was 5.86%.

Fed releases agenda for upcoming conference on large bank capital requirements

Fed seeks public input on large bank rating system revision

Compliance and Risk
July 10, 2025

The Federal Reserve requested comment on a proposal to revise its supervisory rating framework for large bank holding companies to address the "well managed" status of the firms.

Senate Banking Committee advances OCC, SEC nominations

Senate confirms Gould as comptroller of the currency

Newsbytes
July 10, 2025

The Senate voted to confirm Jonathan Gould as comptroller of the currency. He succeeds Rodney Hood, who is acting comptroller.

FinCEN, IRS-CI launch series to help banks combat fentanyl trafficking

FinCEN extends compliance dates for fentanyl orders

Compliance and Risk
July 9, 2025

FinCEN has extended by more than a month the effective dates for orders involving three Mexico-based financial institutions with alleged ties to fentanyl trafficking, according to an agency statement.

FDIC issues final special assessment to recover Deposit Insurance Fund losses

FDIC board to consider proposals on CRA, bank branches

Newsbytes
July 9, 2025

The FDIC board will hold an open meeting next week to consider several agenda items, including proposals on regulatory thresholds, the Community Reinvestment Act and bank branches.

NEWSBYTES

ABA donates to Texas flood relief efforts, urges bankers to contribute

July 10, 2025

Mortgage rates rise

July 10, 2025

Fed seeks public input on large bank rating system revision

July 10, 2025

SPONSORED CONTENT

Navigating Disruption in Ag Lending – Why Tariffs Are Just the Tip of the Iceberg

Navigating Disruption in Ag Lending – Why Tariffs Are Just the Tip of the Iceberg

July 1, 2025
AI Compliance and Regulation: What Financial Institutions Need to Know

Unlocking Deposit Growth: How Financial Institutions Can Activate Data for Precision Cross-Sell

June 1, 2025
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

PODCASTS

Breaking down the bank-related provisions in the big budget bill

July 10, 2025

Podcast: Inside ABA’s new Treasury Check Verification System API

June 25, 2025

Podcast: Staying close to clients amid tariff-driven volatility

June 18, 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.