Hey, here’s an idea. Let’s punish the thousands of small community banks that played by the rules and stuck by their customers during the financial crisis by making it impossible for them to issue debit cards to their customers!
The terribly flawed and misguided debit interchange rule proposed by the Federal Reserve to implement the Durbin interchange amendment to the Dodd-Frank Act will do just that. Millions of good Main Street customers of community banks will see their debit transaction costs rise. Or worse, they will not even be able to get a debit card from their local bank if this boneheaded rule, which will line the pockets of the big-box retail stores with billions in profits, is implemented. Write the Federal Reserve and your congressional delegation and tell them that Main Street community banks and their customers should not have to pay to pump up the profits of the big-box retailers. Make your voice heard—don’t subsidize the profits of the mega-retailers!
If Congress and the Fed thought they could get this harmful interchange plan through without a fight, they should think again.