After Sen. Dick Durbin, D-Ill., successfully added his “swipe fee” amendment to last year’s Dodd-Frank financial regulation bill, he promised, “By requiring debit card fees to be reasonable … small businesses and their customers will be able to keep more of their own money.” That was the theory, at least.
Here’s a good bit:
And it is not at all clear that consumers are going to recover any of the $6.6 billion more they will be paying banks in the form of lower prices from retailers. A study of Australian retail outlets after a similar regulation passed in that country found that none of the swipe-fee savings was passed along to consumers. So all the Durbin amendment really accomplished was a multibillion-dollar-a-year income redistribution from consumers to retailers, who have given more than $90,000 to Durbin this election cycle.
No doubt he’s counting on Illinois voters to forget who is costing them $5 each month between today and his next election day in three years. Let’s try to make sure everyone remembers.
Meanwhile, Murdoc still thinks people should try to find a bank who isn’t adding a new debit card fee.