Unless you’ve been living under a regulatory rock, you’ve probably heard by now that Bank of America plans to add a $5 monthly charge for customers who purchase via debit card. Durbin, FIs, Merchants, the Economy – who is really at fault here? PYMNTS.com readers play the Blame Game in this latest community commentary.
• Read Durbin’s Letter to BoA CEO
• You’ve Been Durbin-ed: Why BofA’s $5 Fee Is Just the Beginning of Consumer Pain
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Hi, my name is Dick Durbin, and I know absolutely nothing about the banking or payments industry, but a lobbyist paid me an inordinate and obscene amount of money to take on this debit battle.
I just can’t believe that banks would find a way to make up for the losses I was pushing on them. Hmmm… Now what should I do… Maybe I’ll try my hand at healthcare… No, our president messed that up… What about social security… No, we all screwed that up… But I need my name on a useless bill to show my dedication to my constituents… How about congress reform!!” – John Smith
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“Mr. Durbin, what is ‘excess profits.’ BOA is a private company and they can charge whatever fees they elect to. I, as a consumer do not have to utilize BOA for my banking needs.
Have you calculated how many jobs you have eliminated by your Durbin Bill? Please do us all a favor and retire.” – Dave Malone
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Do the math and you’ll see that BofA – and several of their competitors – are using Durbin as an excuse to jack up fees to consumers far beyond the reduction in revenues. The bottom line is that Durbin is doing exactly what retailers wanted all along: Durbin has lifted the secret pricing veil and put these abusive fees in front of consumers.
Bankers have a strong vested interest in maintaining a lack-of-transparency “what consumers don’t know won’t hurt them” policy when it comes to merchant fees charged to small business owners like me. Thanks to Durbin, my business will save money. And yes, I am passing the savings on to my customers.” – David Bortfeld
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“I really don’t get where the NRF comes off as an advocate for consumers and an anti-big-bank crusader. Banks are retailers, too, and merchants change product prices all the time. This outburst makes them look foolish.” – Chuck Phipps, AAP, CTP,
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“When is Congress and the American media going to realize that you cannot regulate free markets without a cost. Taxes and government regulations are ALWAYS going to result in higher prices for the consumer. Economics 101!” – Brad Doyle
“Accepting of credit/debit cards is a cost of doing business, and without it, you won’t be doing the $$$. You’re entitled to make a profit, as is every bank and business in America. Quit expecting the government to come to your rescue. Pay attention to your rates. Monitor it monthly, and if paying too much, call your bank, your rep and shop around. The pennies saved with Durbin will truly benefit the Wal-Marts of the world, and no matter what they say, they won’t be passing them on……” – rcd
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“I’m still trying to figure out how congress can tell a company how they make on a product. Is it somewhere in the constitution? When will it stop? Durbin must have NEVER worked in the private sector.
RCD is right on.” – JF
“It is clear that this legislation is flawed and has been since the beginning. The original analysis of the impact this new law would have clearly stated that banks would be forced to make up the profit in another area. There was no doubt about that. Durbin single-handedly did away with free checking and now appears to be the reason for debit card fees.
These senators always act as if the banks are screwing over the middle class every chance that they get, but they always forget that these same banks make up large parts of the retirement accounts for said middle class. If the banks do not get their profits, the same people will be screaming foul as their retirement accounts tumble.
You can’t have your cake and eat it too on this one, Durbin.” Eric Stauffer
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“So how exactly is the government ensuring these benefits get passed to the consumers, and we didn’t just move the profits from banks to the Wal-Marts and Home Depots of the world? Sounds like the consumers might get double dipped because of this great new regulation.” – William Nelson
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“The banks have too much power, favor the rich and discriminate against the poor.” – David Miller
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