Regulations like the CARD Act and Durbin Amendment have dramatically shrunk the revenue from those activities.
"This is one of a long series of consequences of the Durbin amendment, plain and simple, " Ms. Wexler said.
Such an interpretation transparently contradicts the intention of the full House of Representatives and would effectively gut the Durbin amendment.
Coming regulations, including the Durbin amendment and swipe fees, could give MasterCard an edge in taking market share from Visa.
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The Federal Reserve's new limits stem from a provision in last year's Dodd-Frank financial-overhaul legislation known as the Durbin amendment.
Debit swipe fees more closely reflect the cost of fraud protection than do credit card fees, which the Durbin Amendment leaves untouched.
The Durbin amendment is good news for retailers, but bad news for issuers, processors such as Visa and MasterCard, and some cardholders.
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Like credit cards, prepaid cards are also unregulated by the Durbin Amendment.
It also argues the Durbin amendment, which caps fees on debit cards, will drive banks to push customers toward using credit cards instead.
Growth in 2012 has been affected by the Durbin amendment to the Dodd-Frank bill, which has led to a decline in debit volume.
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Once the Durbin Amendment rules go into effect, businesses of all sizes will be able to renegotiate or terminate their current payment processing contracts.
This new rate is the result of the Durbin Amendment, which requires the Fed to set a lower debit interchange rate early this year.
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Even if the Durbin Amendment is implemented as planned, a Javelin Strategy and Research survey suggests that consumers doubt they will see any benefits.
The reasoning behind the Durbin Amendment is that control of interchange fees will lower merchant costs and hopefully translate into lower-priced goods and consumer savings.
But bankers say price-fixing is exactly what the Durbin Amendment does.
The so-called Durbin amendment, for instance, limits the fees banks can collect from merchants like Target and Walmart when their customers swipe their debit cards there.
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The change is primarily due to the increase in operating expenses, including the recent increase in debit card interchange fees as a result of the Durbin Amendment.
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Retailers and merchants appear to be the big winners from this reduced fee that resulted from the Durbin Amendment to the Dodd-Frank Wall Street Reform Act.
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One, it is vulnerable to provision of the Durbin Amendment, a set of laws that among other things allows banks to levy higher fees on small debit card transaction.
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These cuts are in response to the Durbin Amendment in the financial overhaul bill, which caps the interchange fees banks can collect from merchants to 12 cents per transaction.
The headline financial impact from the CARD Act, Reg E, and the Durbin amendment have amounted to billions of dollars in reduced fee revenue at each of the large banks.
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The letter says this is in response to the Durbin Amendment in the financial overhaul bill which caps the interchange fees banks can collect from merchants to 12 cents per transaction.
The common explanation from banks is that they are losing billions of dollars in revenue from the Durbin Amendment which basically cut the interchange fee on debit card transactions in half.
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Originally, the Durbin amendment called to cap so-called interchange fees banks charge retailers at 12 cents per transaction, but the Fed announced today that it would up that cap to 21 cents.
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As the analysts report, new Federal Reserve rules assert that alternative payment systems like PayPal are not payment card networks subject to a provision known as the Durbin amendment that caps interchange fees.
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The Durbin Amendment (named after Senator Dick Durbin) sparked a major battle between banks, which take in major revenue on those swipe fees, and retailers who say banks were over charging them for the swipes.
The House conferees, however, are attempting to interpret the Durbin amendment as pertaining only to such liberalization efforts as may occur in the future with respect to technologies still controlled once the 1990 EAA amendments are enacted.
Just a couple of examples of that: The Durbin Amendment which limits the amount banks can charge retailer for debit card swipe fees and the CARD Act which, among other things, keeps banks from charging overdraft fees.
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The combination of bank reaction and the exclusion of prepaid cards and small banks from the Durbin Amendment will simply create too many unregulated products that are too financially appealing for large-bank-issued debit cards to maintain their market share.
One reason these small financial institutions can compete with the big banks is that under the Durbin Amendment, they get higher swipe fees on debit cards, and they can use that to level the playing field with their giant competitors.
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