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Table of Contents

Lead Story

Payments' place in the retail playbook - Part 1

Dale S. Laszig

News

Industry Update

Visa Checkout gains 12 million consumers worldwide

Walmart PINs hopes to Visa debit lawsuit

EPC study takes aim at Durbin supporters

Marketplace lenders form new association

PayPal releases app upgrade only for Apple, Android

Features

CNP Expo spotlights fraud, big data, virtual reality

Observations from Payment Facilitator Day

Banks jump on mobile wallets

Adam Atlas

Selling Prepaid

Virtual gifting: field of possibility

Views

Email-related fraud threats grow

Patti Murphy
ProScribes Inc.

Disruption a hot topic at Transact 16

Brandes Elitch
CrossCheck Inc.

Door-to-door sales, the good old-fashioned way

Steven Feldshuh
Merchants

Education

Street SmartsSM:
MLS rebranding, the discussion continues

John Tucker
1st Capital Loans LLC

It takes more than sales to sustain an ISO

Jeff Fortney
Clearent LLC

Work less and improve your bottom line

Aaron Nasseh
Finical Inc.

Help small merchants avoid MATCH

Sarah Zilenovski
ClearSale

Company Profile

MavensTech Inc

New Products

Comprehensive transaction transport security

TransKrypt Security Server
NewNet Communication Technologies LLC

Next-generation API for vast, underserved market

Digitzs
Digitzs Solutions Inc.

Inspiration

Applying job interview know-how to sales

Departments

Letter from the editors

Reader's Speak

Resource Guide

Datebook

A Bigger Thing

The Green Sheet Online Edition

June 13, 2016  •  Issue 16:06:01

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EPC study takes aim at Durbin supporters

The Electronic Payments Coalition recently released an analysis of the impact of the Durbin Amendment to the 2010 Dodd-Frank Act. It differs sharply with prior positive reports on the amendment's impact on consumers. Citing independent research by the Federal Reserve, the new analysis dispels claims that the amendment's mandated cap on debit card interchange rates has led to job creation and consumer savings, according to the EPC.

The study, titled Durbin Amendment Has Not Led to Consumer Savings or Employment Gains, Contrary to Retailer Claims, is critical of Durbin Amendment supporters who maintain the amendment has generated an estimated $8 billion in annual interchange fee savings in the form of lower consumer prices and added payrolls. Many Durbin supporters have cited a 2013 study by economist Robert J. Shapiro that contains numerous inconsistencies, the EPC stated.

Durbin's sole beneficiaries: merchants

"The study is fundamentally flawed and presents an inaccurate picture of the true impact of the Durbin Amendment," said Molly Wilkinson, Executive Director of the EPC. "This is a failed policy that only benefits the special interests that pushed for it ‒ big-box retailers."

Retailers have applauded Durbin Amendment reforms, claiming that lower pricing and job creation have benefitted consumers. The National Retail Federation, National Association of Convenience Stores and Merchant Trade Association have drawn examples from the Shapiro study to show the amendment's positive effect on the U.S. economy.

The EPC challenged the methodology used in Shapiro's 2013 report and stated that merchants are the "sole beneficiaries" of any benefits related to debit interchange price caps "at the expense of consumers and the financial Industry."

Flaws in 2016 report

The EPC referenced the following as inaccuracies in the 2013 report:

Advocates, special interests

The Durbin Amendment has led to increased bank fees and related costs that have harmed, not helped, American consumers, the EPC noted. Additionally, any job gains resulting from Durbin reforms were more than offset by job losses in the financial sector. Merchants may choose to ignore these outcomes as they pocket additional profits from Durbin, but the "economic consequences are all too real for the millions of U.S. consumers who experience them," the EPC wrote.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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Spotlight Innovators:

North American Bancard | USAePay | Impact Paysystems | Electronic Merchant Systems