Amid substantial growth in online purchases in recent years, the Federal Reserve today reopened its rule on the Durbin Amendment.
Even before consumers’ acceleration to online shopping due to the pandemic, card-not-present debit transactions rose 21% year-on-year in 2019, according to Pulse’s debit issuer survey released today.
As consumer spending patterns shift, banks are adjusting on the fly and focusing on relationships.
Smaller debit card issuers—those covered by the Durbin amendment’s routing provision but not its interchange fee cap—continued to see a decline in debit interchange revenue, according to the Federal Reserve’s biennial survey of debit card issuers’ economics released today.
When must we retain records for an informal loan qualification request?… and other questions.
Confirming long-observed anecdotal evidence, a recent paper from two Federal Reserve researchers found that after the Durbin Amendment took effect, affected banks were 35.2 percent less likely to offer a “free checking” product than they were before Durbin.
House Republican leadership is expected to remove a provision repealing the Durbin Amendment from House Financial Services Committtee Chairman Jeb Hensarling’s Financial Choice Act before it receives a vote on the House floor, according to news reports last night.
The House Financial Services Committee today voted to advance the Financial Choice Act, Chairman Jeb Hensarling’s (R-Texas) sweeping, 600-page bill aimed at reforming parts of the Dodd-Frank Act’s extensive supervisory regime and providing regulatory relief for banks.
In a joint op-ed published in Morning Consult today, the heads of several major financial trade associations, including ABA, called for the repeal of the Durbin amendment, which imposed government price controls on debit card interchange.
As the House Financial Services Committee prepares to begin the markup of the Financial Choice Act tomorrow, ABA President and CEO Rob Nichols wrote to committee leadership commending them for their efforts to address the negative consequences of the Dodd-Frank Act.