ICBA - Industry Resources - Payments Resource Center - ICBA Supports Bill to Repeal Durbin Amendment


The payment card interchange system in our country was working well, providing tremendous benefit to American consumers and merchants of all sizes and types until the Durbin Amendment to the Dodd-Frank Act imposed price controls on debit card interchange. For the first time in the industry’s history, the government is effectively setting the price in a business-to-business transaction.



The verdict is still out as to whether the small debit card issuer exemption from the interchange fee cap is indeed shielding community banks from the negative impact of government price fixing. ICBA is working to ascertain the impact of new and evolving marketplace dynamics (network pricing, network routing rules and issuer, network and merchant implementation) on this exemption.

Despite a settlement between merchants, payment networks and large banks in their class-action case, merchants continue to want to pay less for the benefits received by accepting payment cards. Merchants are vigorously pursuing various legislative strategies to further shift their payment card interchange costs to consumers, and are likely to continue to push Congress to regulate credit card interchange fees and further weaken payment network rules in the future. If merchant efforts are successful, community banks and their customers will pay more to provide merchants, especially larger ones, with those benefits. Retailers like Wal-Mart should not be given an even greater ability to squeeze local small businesses on margin, nor should community bank customers be forced to subsidize that anti-competitive behavior.

ICBA remains actively engaged in the regulatory and legislative process and continues to work to prevent large retailers from further damaging the electronic payments system.

Staff Contact: Viveca Ware

Date Title Source/Publication
06/15/2016 ICBA Supports Bill to Repeal Durbin Amendment NewsWatch Today
06/15/2016 ICBA Supports Repeal of Price Controls on Debit Card Interchange News Release
06/09/2016 Coalition Backs Durbin Amendment Repeal in Reform Plan NewsWatch Today
05/26/2016 Infographic Challenges Retailers on Interchange, Security NewsWatch Today
04/19/2016 Op-Ed: Debit Interchange Windfall for Retailers Costs Consumers NewsWatch Today
04/06/2016 Senate Panel Hears Costly Downside to Debit Interchange Controls NewsWatch Today
10/01/2014 On the Third Anniversary of the Durbin Amendment, 94% of Consumers Not Seeing the Savings Retailers Promised Them Electronic Payments Coalition News Release
03/04/2014 Payment Card Interchange Policy Resolution
08/21/2013 ICBA Statement on Fed Decision to Appeal Court Ruling on Debit Interchange News Release
05/01/2012 ICBA: Despite Study, Debit Card Interchange Rule Still Harms Community Banks and Consumers News Release
12/19/2011 WSJ Article on Debit-Fee Cap Consequences Letter to Congress
07/05/2011 ICBA Summary of Fed Final Rule Summary
06/09/2011 Thank You for Supporting the Tester-Corker Debit Interchange Amendment Letter to Congress
06/08/2011 Support for Tester/Corker Amendment to the Economic Development Revitalization Act of 2011 (S. 782) Letter to Congress
05/31/2011 Michaels Breach is Warning on the Durbin Amendment Op Ed
05/10/2011 Impact of the Debit Interchange Amendment on Small Financial Institutions Letter to Congress
04/11/2011 Proposed Rule on Debit Card Interchange Fees Joint Letter to Regulators
03/17/2011 Consumers Payment System Protection Act (H.R. 1081) Letter to Congress
03/16/2011 Support for the Debit Interchange Fee Study Act (S. 575) Letter to Congress
02/22/2011 Proposed Rule on Debit Card Interchange Fees Industry Letter to Regulators
02/22/2011 Every Major National Bank and Credit Union Trade Association Joins to Urge Fundamental Revision of Federal Reserve’s Debit Card Rule Industry News Release
02/22/2011 Debit Card Interchange Fees and Routing Letter to Regulators
02/07/2011 Commentary: The Problem with Interchange Price-Fixing Op Ed
12/16/2010 ICBA: Proposed Interchange Rules Will Disadvantage Community Bank Customers News Release
06/30/2010 Interchange "Swipe" Fees Letter to the Editor
06/22/2010 ICBA to Conferees: “Compromise” on Interchange Price Controls Is No Compromise News Release
06/09/2010 ICBA’s Fine Speaks Out on Harmful Senate Interchange Amendment News Release
05/12/2010 ICBA to Senate on Interchange: “Carving Out” Community Banks Will Not Help Main Street News Release
05/05/2010 Industry Letter on Amendments to S. 3217 Affecting Interchange Rates Letter to Congress
04/28/2010 ICBA Urges Congress: Oppose Misguided Interchange Legislation That Would Hurt Main Street Banks and Their Customers News Release

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