A House bipartisan proposal to repeal the Durbin Amendment has already received the support of several trade groups as well as backlash from Sen. Dick Durbin (D-Ill.)
Durbin’s office referred to the bill, which was introduced by Reps. Jason Chaffetz (R-Utah) and Bill Owens (D-N.Y.), as an attempt to bail out the big banks.
“This new bill is another big-bank bailout, nothing more, nothing less,” Durbin’s spokesperson said, DigitalTransactions.net reports. “Claims that swipe-fee reforms are hurting small banks and credit unions willfully ignore reality; those institutions are exempt from the new regulation and have actually seen a surge in new accounts since reform took effect.”
The bill has attracted support from organizations such as the Independent Community Bankers of America industry group and the Electronic Payments Coalition.
“We now see this unfortunate situation for consumers playing out in the form of higher costs to own and use a debit card, with no promise from merchants that any of their savings will be passed on at the register,” the EPC said, according to DigitalTransactions.net.
The bill is anticipated to pass the House although it is not expected to be approved by the Senate, which has a Democratic majority that is led by the amendment’s chief sponsor, Durbin, who serves as majority whip.