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  • PODCAST: New Debit Card Fees Thanks to the Durbin Amendment

    In this week’s Heritage in Focus, regulatory fellow Diane Katz discusses a provision in the regulatory reform bill, also known as Dodd-Frank, that is leading banks to increase debit card fees. Listen here.

    The provision, known as the “Durbin amendment,” limits the amount banks can charge retailers when consumers swipe their debit cards. As a result, Bank of America is set to start charging users $5 per month, while other banks are considering increased fees, as well.

    How will this affect jobs and economic growth? Will it encourage people to switch to credit cards? If so, does that mean we’re encouraging people to take on more debt?

    Listen to Diane discuss answers to those questions and more.

    To get regular updates on Heritage in Focus podcasts, visit our RSS feed or subscribe on iTunes.

    To listen to more Heritage in Focus podcasts, visit our podcast page.

    Posted in Economics [slideshow_deploy]

    6 Responses to PODCAST: New Debit Card Fees Thanks to the Durbin Amendment

    1. @UniBul says:

      The Durbin Amendment is solely responsible for the wave of new bank fees. BofA and all other big banks are looking for ways to make up for lost revenues and, frankly, I can't blame them, even as I don't enjoy paying higher fees.

      It's been abundantly clear ever since the debit interchange limit was first proposed that it was ultimately going to hurt consumers in the form of higher fees and that is precisely what is currently happening. http://blog.unibulmerchantservices.com/banks-disc

    2. @WORLDDEBT says:

      A million seconds is 11.5 days. A billion seconds is 32 years. A trillion seconds is 32,000 years.

      America owes over $14 trillion.
      World owes over $42 trillion

      The global debt, or ours, cannot be paid off without seriously harming the nation, the economy, and the people.

      The global debt – and America's – need to be realigned.
      http://www.debtrealignment.com

      Thank you.

      Samuel Margolies

    3. Stirling says:

      These politicians fail at everything they get their business into. It's amazing that someone isn't throwing a pie in his face for this catastropic FAIL of understanding of economics 101. Mr. Durbin PROFIT is what makes this country run, if you take that away then you have nothing but a 3rd world country of dictators and surfs..

    4. Jeff, Illinois says:

      Wrong . . thanks to bank greed . . and their determination to work around reasonable limits put on the extent that they can market gouge !!!

    5. Bobbie says:

      Why were these provisions passed in the first place? What was the complaint of majority that brought government rushing in to step beyond their constitutional duty to create such deviance? they keep protecting irresponsibility at the cost of the responsible instead of holding the irresponsible to the same rules. There shouldn't be any discriminating factors or exceptions, yet that's what it sounds like with these multiple restrictions. we shouldn't have to babysit dick durbin dodd-frank but are compelled to as they can't conduct their work without corruption and ignorance.

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