![]() ![]() A modified version of the Durbin amendment was later agreed to by House and Senate negotiators and included in the final bill. The amendment was agreed to after Congress held six hearings on the issue of interchange fees and their effect on consumers. The Durbin amendment was passed by the Senate 64 to 33 in May during the Senate's consideration of the Wall Street reform bill. I look forward to this provision's day in court and am confident that our language will be found to be fair and Constitutional." Our language simply ensures that debit interchange fees charged to retailers by the card networksnot the banksare 'reasonable and proportional' to the cost of processing transactions and provides competition in an area of the market where there's none."ĭurbin added, "Congress approved this language by a wide bipartisan margin in reaction to the frustrations of millions of merchants and consumers who were getting nickled and dimed by the anticompetitive interchange system set up by big banks and credit card companiesincluding TCF. "The law in no way addresses the fees TCF, or any other bank, can charge and it does not set interchange rates. "TCF's complaint not only fundamentally misunderstands the law regarding interchange fees, but it also ignores the facts," Durbin said. ( Click here for previous CSP Daily News coverage.) The bipartisan language passed as part of the Wall Street reform act, requires the Federal Reserve to determine if the current interchange fee structure is both "reasonable and proportional" to the real cost of processing a debit card transaction and allows small businesses to offer discounts to consumers when they use cash, checks or debit cards. WASHINGTON - Assistant Senate Majority Leader Dick Durbin (D-Ill.) released the following statement today after Minnesota-based TCF National Bank filed a lawsuit challenging the constitutionality of a Durbin-authored law regarding interchange fees. ![]()
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