Texas Bankers Association Highlights Broad Impact of Durbin Interchange Rule

“The Durbin amendment essentially moved the cost of debit transactions away from merchants and focused it more on consumers,” explained Texas Bankers Association Chairman Jim Goudge in a Fort-Worth Star-Telegram opinion-editorial this weekend.

Goudge explained how the impact of Durbin is broad and will be felt beyond just the largest institutions, citing a credit union survey that found 91 percent of credit unions offering debit cards anticipate making changes to their rates, fees, or other services as a result of the Durbin amendment.

It doesn't soften the blow of paying bank fees, but I think it's important for consumers to know why they are being implemented.

It's easy to blame the banks, but by capping the fees merchants pay for the value and efficiencies of using a debit card, government intervention has fundamentally altered the economics of offering debit cards to consumers.

The Durbin amendment may impact customers in other ways: an end to free checking accounts, the addition of annual maintenance fees, an end to debit card rewards programs or fewer branches in which to conduct banking business.

Read the article.