Durbin 1.0 Did Not Work Well for Debit, Do Not Expect Durbin Amendment 2.0 to Work for Credit

If you ask the Federal Reserve, particularly one a hundred miles away from the nation’s capital in Richmond, Virginia, the Durbin Amendment failed to reduce merchant card processing costs. While the timing played well for the U.S. Senator, who ran for re-election in 2008 and 2014, the price controls did not meet the mission of reducing merchant costs. In a 2015 study, the Richmond Fed found, “New survey results suggest that the regulation has had limited and unequal effects on merchants.”  The report, which you will find here, suggests the opposite.  Main Street merchants did not benefit. In an [...]