The Durbin-Bond amendment will increase transparency of credit card fees and will allow merchants to offer a wider array of discounts to consumers. This amendment is not intended to address all of our problems with interchange fees, but is a step forward that if passed would begin to give consumers more information on the huge fees banks charge every time a credit card is swiped and bring some competition to the market.
The Durbin-Bond Consumer Discount Fee and Transparency Amendment:
- Updates current law, which permits merchants to provide discounts for consumers who pay by cash or check instead of credit card, by permitting merchants to also discount for debit cards or lower-fee credit cards.
- Directs the Federal Reserve Board to gather and publish information on interchange fees, other credit card fees, and the rules governing them.
- Strengthens existing laws to clarify that card companies cannot penalize retailers for 1) offering discounts; 2) the way in which they display the discounts; or 3) for directing consumers toward a discount payment option.
This issue will be determined within the week, so contact your Senators ASAP!