Washington, D.C. — Bank Policy Institute joined the American Bankers Association, CBA, CUNA and NAFCU to issue the following statement in response to the Federal Reserve’s decision to revisit Regulation II.
The Durbin Amendment has been flawed from the beginning, making it harder for banks and credit unions to serve consumers, causing unintended consequences for financial institutions and failing to deliver on its promise to lower retail prices. The Fed’s decision to revisit Reg II risks causing even further consumer harm. The Fed’s own study of debit card transactions, both in person and online, shows that merchants and consumers are increasingly benefitting from significant investments in innovation and fraud detection embedded in the nation’s payment rails today. By reopening the rules surrounding debit card transactions, the Fed could put the convenience, safety, and security that Americans have come to expect when they use their debit card at risk. We will vigorously oppose any attempt to undermine the payments system at the expense of consumers.