The Durbin Amendment And The Regulation Of The Debit Card Industry

Background Information From Thought Leaders:

The Impact of the U.S. Debit Card Interchange Fee Caps on Consumer Welfare: An Event Study Analysis

by David S. Evans (Univ. Chicago, UCL, GlobalEcon), Howard H. Chang (GlobalEcon), Steven Joyce (GlobalEcon), Oct. 2013

The cost to merchants of taking payment on debit cards declined by more than $7 billion annually as a result of the Durbin Amendment to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, while the effective cost to issuers of providing debit card services to consumers increased by a corresponding amount. This paper reports an event-study analysis of stock prices to determine the impact on consumers of the Durbin Amendment.

Economic Analysis of Claims in Support of the ‘Durbin Amendment’ to Regulate Debit Card Interchange Fees

by David S. Evans (University of Chicago Law School; University College London; Global Economics Group), Howard H. Chang (Global Economics Group, LLC), Margaret Morgan Weichert (Market Platform Dynamics), May 2011

Section 1075 of the 2010 Dodd-Frank Act requires the Federal Reserve Board to regulate the debit card industry including the interchange fee banks and credit unions receive from merchants. This paper reviews the arguments in support of this regulation put forward by Senator Durbin, who proposed the amendment that led to Section 1075, large retailers, and merchant trade associations.

Payment Card Regulation and the Use of Ec


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