We shouldn't lose sight of how this whole thing started. All these debit fees banks are now rolling back were introduced in response to the fall in bank revenues from debit card transactions that was the consequence of the passing of the Durbin Amendment to the Dodd-Frank bill and the subsequent Federal Reserve ruling to limit debit interchange at $0.22 + 0.05% of the transaction amount.
Those of us who were paying attention to what was happening knew that this was coming and warned against it. Here is one of the things we wrote at the time: http://blog.unibulmerchantservices.com/ban…
What happened was that the government decided that a substantial portion of the banks' revenues would be collected by retailers. The banks then decided to make up for the shortfall by creating new revenue sources. Is that surprising?
The bottom line is that the banks will find a way to make up for their lost revenues and their customers (i.e. us) will foot the bill.
By Richard Alley
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