(Source: ABA) – “The recent news that Visa will try to implement a two-tiered pricing system for debit interchange does not alleviate the negative consequences that the Durbin amendment, and the subsequent rules proposed by the Federal Reserve, will have for banks of all sizes – particularly community banks – and the consumers they serve.

“Despite the statutory attempt to separate out smaller banks from the price controls embodied in the Durbin amendment, the marketplace will do what it always does – drive business to the lowest cost option.  Community banks will ultimately be harmed as a result, making it harder for them to meet the needs of their customers and local communities.  A very real conclusion that can be drawn is that this type of government interference in marketplace pricing is inappropriate, counterproductive, and extremely harmful to consumers.”

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