Decline the Durbin Plan

Ask yourself this: should the federal government intervene in negotiations between private parties? If you say no, then you should oppose the Durbin amendment and any extension of it to credit cards. That is exactly what it is, encroachment of the federal government into private business.

The Durbin amendment is not conservative policy.

Congress should focus on promoting competition in the payments system by eliminating regulations, not creating more.

Americans for Tax Reform, Op-ed in The Hill

Who Supports the Durbin Amendment?

  • Democrats and merchants
  • Using the Durbin amendment, rent-seeking merchants leveraged the federal government to pad their profits, and Democrats were more than happy to oblige.
  • The Biden administration supports the Durbin Amendment
  • The Biden DOJ and FTC  submitted letters of support for a Federal Reserve rule aimed at clarifying routing provisions in the Durbin Amendment
  • Biden supports federal intervention in private contracts between private parties
    • Therefore, any Republican member in support of extending the Durbin Amendment to credit cards is effectively aligning themselves with the Biden administration.  Even if “only” on the routing provisions of Durbin.

Coalition Letter Opposing the Credit Card Competition Act

Click here to read the full letter:

Durbin Plan

Q&A on Credit Card Regulation

Americans for Tax Reform has been consistently opposed to government regulation of debit and credit card transactions.  Last year, ATR opposed the Credit Card Competition Act (117th Congress; S. 4674) because, if enacted, it would have unnecessarily regulated credit card transactions. The bill as introduced was also an extension of the onerous Durbin…

Durbin Plan

ATR Op-Ed in RealClearMarkets: “Credit Card Regulation Empowers the Fed to Restrict Consumer Choice”

via RealClearMarkets Instead of promoting competition, the Credit Card Competition Act of 2022 expands the power of the Federal Reserve to distort the supply and demand of the credit card market to a point where consumers will see rewards programs largely disappear. This government intervention will lead to fewer…

Durbin Plan

ATR Opposes Credit Card Competition Act of 2022

Americans for Tax Reform vehemently opposes the Credit Card Competition Act of 2022. The bill is sponsored by Senators Dick Durbin (D-Ill.) and Roger Marshall (R-Kan.).  If enacted, the bill would alter the landscape of credit cards to where multibillion-dollar retailers would gain significant control of payment processing at the expense…

Durbin Plan

ATR Op-Ed in RealClearMarkets: “Let’s Block Government Intervention In Market-Driven Payment Systems”

via RealClearMarkets The federal government’s distortion of the payment transaction market has raised costs and reduced revenues for banks and credit unions while providing no benefits to consumers. If Congress or the Biden administration further encroaches on this market via legislation or executive action, consumers will continue to see…

Durbin Plan

ATR Op-Ed in The Hill: “The Durbin amendment is a disaster for banks — don’t expand it to credit cards”

via The Hill Sen. Dick Durbin’s (D-Ill.) eponymous amendment to the Dodd-Frank Wall Street Reform and Consumer Protection Act is the epitome of unnecessary federal overreach. Now, some lawmakers are discussing the expansion of the Durbin amendment to credit cards. The continuation of this bad…

Durbin Plan

ATR Leads Coalition to Prevent Further Expansion of the Durbin Amendment

Recently, a group of free-market organizations, led by Americans for Tax Reform Presidents Grover Norquist, sent a letter to Senate Banking Committee and House Financial Service Committee leadership opposing further attempts to expand the Durbin Amendment. Retail trade associations have continued to ask for further carve outs and price controls from…