ICLE on the Durbin Amendment
It is unfortunate, then, to see recent efforts by policymakers backed by big-box retailers to limit investment into the electronic payments industry, and in turn the technology that protects both consumers and small businesses, through the expansion of Dodd-Frank era price controls. For years, these global chains have insisted that these price caps benefit consumers with cheaper prices in stores. However, a 2017 report published by the International Center for Law and Economics detailed how price controls on debit card fees resulted in big box retailers saving approximately $40 billion. Furthermore, this cap has resulted in a massive transfer of income from consumers to retailers. In fact, according to a recently-conducted analysis using data from the Federal Reserve, since 2012, issuers have lost more than $90 billion in interchange revenue — including an estimated $14 billion in 2019 alone.