Durbin fee will cost debit card customers

The law of unintended consequenes accompanies every piece of legislation passed by congress. Conservatives recognize this fact of life; liberals don't. That's how we get 3000 page health insurance "reform" bills and gigantic headaches like Dodd-Frank; a measure designed to "protect" consumers but whose unintended consequences will make credit harder to get for most, and cost consumers more in the long run. The "Durbin fee" on debit cards is one such unintended consequence: Durbin pitched his amendment, which empowered federal bureaucrats to fix the fees banks can charge merchants for each debit card transaction at 24 cents, as a blow to the "excess profits" of "big banks." Banks currently charge an average of just 44 cents per transaction, but for big retailers like Wal-Mart, all those transactions can add up. Analysts estimate that the Durbin amendment will be a $6.6 billion boon for the Targets and Walgreens of the world. But big banks didn't become big by eating billion-dollar...(Read Full Post)