NYT: Durbin Amendment
Makes It ‘Likely’ Consumers Would See Lower Prices
June 7, 2010
The “paper of record” recently threw its support behind
merchants with its approval of the Durbin amendment that, if enacted into law,
would limit swipe fees issuing banks can charge on debit card transactions. In
an editorial published recently, The New York Times called the fees
“troubling” and said “the amendment could save small businesses billions of
dollars a year and make it likely that customers would see lower prices.” The
amendment is part of the Restoring American Financial Stability Act of 2010,
passed by the Senate in May. The Times echoed arguments merchants have been
making for years: Because the card networks control 80 percent of the market,
they “can raise prices without fear of competition. And the fee schedules are
so complicated and confusing that merchants often don’t know what the fees will
be or how they are derived.”