Wall Street Journal Editorial Criticizes Debit Interchange (Misc News: March 18, 2011)
A scathing editorial in the Wall Street Journal slams the Durbin Amendment on debit interchange and even criticizes bills to delay implementation for two years.
“Another day, another mess to clean up from the 111th Congress. The latest debacle is the looming Federal Reserve rule to fix prices on debit cards, which threatens the flow of credit to low-income Americans and promises higher fees on bank services for nearly everyone else.”
The Journal says that merchants have promised to pass along the savings in the form of lower prices to consumers. The Journal calls that doubtful.
“Do you like free checking,” the Journal asks? “Enjoy it while you can, because unless you’re a high roller you will soon be paying for check-writing privileges.”
The Journal also questioned the wisdom of a bill that has been introduced in the Senate that would delay the interchange law by two years.
“But if the law is a bad idea, it won’t be a better idea in two years.”
Click here to read the full editorial.