Title: Misguided Regulation of Interchange Fees: The Consumer Impact of the Durbin Amendment
Abstract: uring a famous episode of Seinfeld, Jerry performs a standup routine about how women prefer to make purchases with checks. In contrast, men seem to find checks unmanly, as they are like, “A note from your mother that says, ‘I don’t have any money, but if you contact these people, I’m sure they’ll stick up for me.’” This episode aired in 1990 and while this is simply a humorous interpretation of an everyday event, it highlights a period of transition from predominantly using checks for purchases to debit cards. For consumers, debit cards limit liability when a card is stolen, offer easy access to Automated Teller Machines (“ATMs”) and points of sale, allow for more efficient record keeping of transactions, and provide a safe alternative to carrying large sums of cash. In 2009, consumers made almost thirty-eight billion debit card transactions in the United States, accounting for 35% of all non-cash payments. Debit cards have now surpassed checks as the most frequently used method of payment. However, unlike checks, debit card transactions generate an interchange fee, which is paid by the merchant to the
Publication Year: 2013
Publication Date: 2013-01-01
Language: en
Type: article
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Cited By Count: 3
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