ICLE on the Durbin Amendment
Payments Journal – ICLE was cited in Payments Journal in an article about the benefits realized from investments in the electronic payments industry. You can read the full piece here.
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.