Removing Barriers Blog

CUNA Joins Financial Trades in Sending Letter of Support for Durbin Repeal
Posted April 28,2017 by CUNA Advocacy

Prior to the House Financial Services Committee hearing on the CHOICE 2.0 Act, CUNA joined a number of other financial trade associations in the Electronic Payments Coalition (EPC) in sending a letter supporting the repeal of the Durbin Amendment to Chairman Hensarling.   
 
The letter’s highlights include: 

  • The $8 billion annual benefit windfall received by big box retailers 

  • The study done by the Federal Reserve of Richmond showing 99% of retailers raised prices or kept the same after Durbin went into effect 

  • The Durbin price controls and routing provision clearly have harmed community financial institutions with less than $10 billion in assets by eroding their interchange revenues 

In the beginning of April, the EPC released a study finding that small merchants care more about value of services received rather than the cost of interchange.  This study greatly contradicts retail lobby groups supporting the need for the Durbin Amendment. 

As the Committee continues its work on CHOICE 2.0, CUNA will continue its work with the Coalition advocating for the repeal of the Durbin Amendment.