Let’s be clear -- retailers, not consumers, benefit from … [the] resolution. This settlement even provides merchants with the ability to impose ‘checkout fees’ on customers just for using credit cards.He added that if retailers use the settlement to justify more government price controls, they will be just trying to profit at their customers’ expense.
Even after receiving an $8 billion annual windfall from the Durbin amendment, they refused to pass along promised savings to customers and sued the Fed for even more profits. Big-box retailers will likely seize this opportunity to ask Congress for even more handouts.
These types of issues are best resolved by market participants. Recent history illustrates the negative consequences for consumers when policymakers choose winners and losers and distort the marketplace.The ill-conceived passage of the Durbin amendment, which led to increased profits for big-box retailers and no savings for consumers, was an example of such marketplace distortion, he said.
Only time will tell if this history will repeat itself, as retailers continue to show little regard for consumers. While the banking industry may not like all the results in this case, our industry is ready to put this matter behind us and continue playing a critical role in our nation’s economic growth and job creation.Read Keating’s statement.