Tag:

Durbin Amendment

Latest Headlines

Latest Headlines

Study estimates lost revenue due to Reg E

A former Fed economist turned academic has estimated the banking industry’s lost revenue due to Reg E at between $3.8 to $5.3 billion annually. Recall that the Electronic Funds Transfer Act required that banks provide a mechanism by which customers could opt in to overdraft services, which pre

Settlement could cut credit card interchange fees

In the wave of the Durbin Amendment, we suggested that banks will likely promote credit card usage at the expense of debit card usage. We are seeing that happen in in subtle ways, which makes sense as the interchange fee for credit card swipes have not been slashed by reform the way debit card

Big banks hike existing consumer fees

One of the biggest challenges facing large retail banks face right now is the pressing need for revenue at a time when consumers are strapped and keen to put up a fight. The recent fiasco at Bank of America, which tried unsuccessfully to impose a simple debit card fee on consumers, was ample e

Legal liabilities loom for card companies

The perennial dispute between the big banks and the card processing network kingpins, notably Visa and MasterCard, seemed to crest in 2011 with the passage of the Durbin Amendment. The severe cut in the interchange fee paid by retailers to banks was a watershed event and many think that the bi

Credit card interchange fees loom as big revenue source

The bank industry continues to chafe under the Durbin Amendment, leading to lots of angst as to how the lost swipe fees will be offset. Especially at this time of year, perhaps the industry should pause to give thanks that the effects of swipe fee legislation weren't even worse. We tend to

Wal-Mart wins with financial services

It was huge news back in 2007 when Wal-Mart dropped its controversial plans to start up an industrial bank in Utah. The retail giant was bitterly criticized by many, which made it impossible to move forward. But now, in the wake of retail anger directed at big consumer banks, Wal-Mart is back in t

SEC launches debit card price-fixing investigation

In the wake of the Durbin Amendment, large regional and nationwide commercial banks began to take initial steps toward rolling out debit card user fees for many--if not most--checking account holders. The likes of SunTrust and Regions banks went ahead and imposed the fees. Wells Fargo and JPMo

As Chase kills two more fees, banks fight for customers

Are the largest banks spooked by the public backlash against Bank of America's debit card fee foray, the fallout of which has engulfed them all? To be sure, we've seen banks beat a fast retreat from their debit card fee plans. Several banks, including JPMorgan Chase and Wells Fargo, cancel

Banks ratchet up consumer fees

The debit card fee fiasco at Bank of America has only intensified the pressure to generate more fee revenue, to offset the effects of the Durbin Amendment and other reform measures. We're already seeing banks impose more fees that may or may not be all that transparent. We're getting to the po

New startup changing the future of rewards programs

The decline of the free checking account has been accompanied with a decline in rewards programs, as banks maintain they can no longer finance such programs in the wake of various reform measures.