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Search Results for: durbin amendment

Durbin’s Debit Law Is Eyed As Part of a Sweeping Financial Regulatory Review

  Not yet five years after its implementation, a controversial federal regulation governing interchange and transaction routing for debit cards has come under review as part of a process set out by a 20-year-old law called the Economic Growth and Regulatory Paperwork Reduction Act. The debit card regulation, the Federal …

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Sen. Durbin Suggests That the Big Networks Have Too Much Power Over Chip Cards

U.S. Sen. Richard Durbin, author of 2010’s controversial Durbin Amendment, wants to know about the inner workings of EMVCo, the chip card standards body owned by the six largest global payment card networks. A statement Thursday from the Illinois Democrat says Durbin is “seeking information on whether the deployment of …

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Surprise! PIN Interchange Drops for Durbin-Exempt Issuers

Now that four years have passed since the Durbin Amendment to the Dodd-Frank Act took effect, the payments industry has had time to assess its effects. One interesting twist is that, for issuers exempt from the law’s rate caps, PIN-debit interchange has actually slid downward. To be sure, issuers generally …

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Research Casts Doubt on Merchant And Consumer Savings From Durbin Debit Cap

By John Stewart Evidence emerged this week that the Durbin Amendment may not be cutting debit card acceptance costs for merchants as effectively as its backers intended. Nor has it prompted many merchants to pass on their savings to consumers, according to a paper published in Economic Quarterly, a publication …

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PIN-Debit Interchange Drops for Issuers Exempt from Durbin Rate Cap

Issuers are generating less in interchange for PIN and signature debit card transactions than they were 10 years ago, according to the Pulse electronic funds transfer network’s 2015 Debit Issuer Study released Thursday. The study examined transactions made in 2014 from more than 70 debit issuers involving 147 million debit …

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Five Years Later, What’s the Bottom Line on Durbin? Well, It’s Complicated

By John Stewart Five years after it became the law of the land, the Durbin Amendment remains as controversial as it was then, with virtually no agreement in sight on such questions as whether merchants have cut prices in response to interchange savings or whether consumers have paid more for …

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Research Shows How Durbin Torpedoed Visa And MasterCard’s PIN Debit Traffic

By John Stewart The Durbin Amendment’s transaction-routing requirements, which have been in effect now for three years, are widely thought to have benefited merchants by increasing competition for debit card traffic. But PIN debit networks that aren’t owned by Visa Inc. and MasterCard Inc. were expected to benefit as well …

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At Last, Finality on Durbin

No sooner were we going to press with this issue than the U.S. Supreme Court rejected a petition from major merchants and merchant groups that, if it had been accepted, might have thrown the Federal Reserve’s interpretation of the Durbin Amendment into a cocked hat—again. High-court review at a minimum …

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Pulse Sues ‘Long-Time Monopolist’ Visa Over Post-Durbin Debit Actions, Seeks Rival’s ‘Restructuring’

Over the past several years, during his conference calls with analysts to review Discover Financial Services’ quarterly earnings, chief executive David W. Nelms occasionally took swipes at Visa Inc.’s efforts to maintain its dominant debit card market share in the wake of the Durbin Amendment, which severely undercut Visa’s Interlink …

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Three Years After Durbin, Debit Pricing Flaw Still Drives up Cost for Small-Ticket Sellers

Three years after the Durbin Amendment took effect, the law’s painful impact on the cost of selling soda, candy, newspapers, and other small-ticket items remains an issue. And things may stay that way unless the newly elected Congress acts after taking office at the turn of the year, observers say. …

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