Slashsnake
VIP Member
- Aug 5, 2016
- 589
- 48
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What are some opinions on Dodd-Frank now that we're one day away from Trump taking office?
I don't have much to say against Dodd-Frank personally, but that Durbin Amendment most definitely needs to go, and go fast. Those Illinois politicians certainly do embarrass themselves frequently.
What advantage does the Durbin Amendment have to the average consumer? I only see problems.
1) Reducing the interchange fee % merchants have to pay when using a debit card hasn't reduced the cost of goods. Merchants should be paying what the banks tell them to (or the free market) or else they shouldn't accept cards... If the merchant stops accepting cards they'll lose business.
2) Community banks and credit unions (other than NavyFed) that were supposed to be exempt from this amendment find themselves facing reduced interchange fees anyways. My main credit union charges $2.00 for every ATM and debit purchase combined during a month period after eight of them. Now why do you think that is? Oh that's right, DURBIN reducing the interchange fees. If I'm using a debit card I want to use it over the debit network. The credit network is for credit cards. Over the debit network most transactions post instantly and I have to use a PIN.
3) Banks push extra costs on the consumers, example in point #2. Banks will not just eat the costs of having to follow the Durbin Amendment under Dodd-Frank. "Free" checking hardly exists at the bigger banks anymore. There are other fees like increasing overdraft fee amounts, removal of debit card rewards, debit card usage fees, etc.
4) Slow transition timing between credit vs. debit EMV. Ever notice some places take EMV credit but not debit, yes I'm looking at you Rite Aid and Walgreens.
I don't have much to say against Dodd-Frank personally, but that Durbin Amendment most definitely needs to go, and go fast. Those Illinois politicians certainly do embarrass themselves frequently.
What advantage does the Durbin Amendment have to the average consumer? I only see problems.
1) Reducing the interchange fee % merchants have to pay when using a debit card hasn't reduced the cost of goods. Merchants should be paying what the banks tell them to (or the free market) or else they shouldn't accept cards... If the merchant stops accepting cards they'll lose business.
2) Community banks and credit unions (other than NavyFed) that were supposed to be exempt from this amendment find themselves facing reduced interchange fees anyways. My main credit union charges $2.00 for every ATM and debit purchase combined during a month period after eight of them. Now why do you think that is? Oh that's right, DURBIN reducing the interchange fees. If I'm using a debit card I want to use it over the debit network. The credit network is for credit cards. Over the debit network most transactions post instantly and I have to use a PIN.
3) Banks push extra costs on the consumers, example in point #2. Banks will not just eat the costs of having to follow the Durbin Amendment under Dodd-Frank. "Free" checking hardly exists at the bigger banks anymore. There are other fees like increasing overdraft fee amounts, removal of debit card rewards, debit card usage fees, etc.
4) Slow transition timing between credit vs. debit EMV. Ever notice some places take EMV credit but not debit, yes I'm looking at you Rite Aid and Walgreens.
