The Wisconsin Bankers Association has released a statement that puts the blame of higher bank fees on the Durbin Amendment and reminds Wisconsin bank account holders of the association’s perspective.
“With the Durbin Amendment…the federal government has placed artificial price caps on what all financial institutions can charge merchants for the convenience of offering debit card purchases,” the WBA said, according to BizJournals.com. “This cap does not cover the high costs financial institutions pay to provide secure systems, including fraud-prevention measures, absorbing fraud losses and operating the vast debit card system.”
During debate on the Durbin Amendment, as well as on the Dodd-Frank financial overhaul legislation, the WBA opposed what it called the “increased government intervention.” Both bills, however, ultimately passed and have led many banks to increase and add new fees in order to make up lost revenue.
“Wisconsin banks continue to take in deposits and make loans despite the increased regulatory burdens they face and the unjustified accusations reported in the media in the last few weeks,” the WBA said, according to BizJournals.com.
The WBA does not have plans for further action on the Durbin Amendment. They may soon have to prepare for another battle in Congress, however, against capping interchange fees on credit cards.