On July 21, 2010, President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act into law. Contained in the voluminous financial reform bill was a last-minute addition, the Durbin Amendment, which capped debit card fees below industry costs. The Texas Bankers Association, as well as other banking, credit union and business trade associations, predicted that the Durbin Amendment would result in higher costs for the consumers since the cap on interchange fees does not cover the high costs of operating a vast debit card system. Since the Federal Reserve Board's rule implementing the Durbin Amendment took effect on Oct. 1, some institutions have announced that they will implement monthly fees for debit card users if they use those cards for purchases.
It's important for consumers to know why these fees are being implemented. Simply put, by capping the fees merchants pay for the value and efficiencies of using a debit card, government intervention has fundamentally altered the economics of offering debit cards to consumers.
Read Chairman Jim Goudge's Op-Ed: The Durbin Amendment and the truth behind debit card fees.
Interchange Data Fact Sheet: Facts and figures about debit card use and the cost of signature debit.
Interchange Price Controls Fact Sheet: How is the Durbin Amendment affecting banks and consumers? Why is the interchange rule bad public policy? Read more facts about the Durbin Amendment.
Texas Bankers Association Summary of the Durbin Amendment: How the Durbin Amendment affects banks, merchants and consumers.