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One of the new bank rules and the daughter -- -- puts a cap on the amount of money banks can charge -- is when you buy something with -- of debit cod.
Joining us now is -- welcome he's the president of US markets -- the -- Chris welcome -- the program that's near Stewart thank -- get -- -- frank.
Limits the amount of money that you couldn't charge merchants went on a -- my -- I am totally unaffected by this why should apply a consumer.
What about a -- this is out now price fixing by the US government so what senator Durbin put an amendment into the Dodd-Frank bill at the eleventh hour.
But basically cap the amount of season and in charge.
And it's a free enterprise system merchants are free to accept debit cards to accept credit cards to not accept debit cards -- credit cards.
To accept cash tonight that cap and absorb the cost legitimate costs of those payment products and debit cards have brought America into the digital age.
From a -- perspective so they've -- cash out of the system and taken -- -- system.
What senator Durbin has done is he's taken fourteen billion dollars per year.
Out of the payment system today which is well balanced it works well for consumers and merchants.
And the impact of that is going to be a fourteen billion dollar tax.
On the US consumer and the reason that's gonna happen is.
Banks they have to balance their their books.
-- the fees that debit cards provide our part of the spectrum of services provided to consumers and didn't have to pass -- along to consumers that the government is is a zero sum game though but this is -- -- I'm sitting there thinking OK but then when I go to I things I should have a fourteen billion dollar discount because the retailers are gonna have to get the fourteen billion.
To the bank so that very question and it and worthy of debate but the fact of the matter is the Durbin amendment did not have any provision.
To require merchants to pass those savings back to consumers.
So if you believe that you walk into a big box merchant today.
And by hammer for nine dollars and 99 cents that post Durban that -- gonna cost nine dollars and 97 cents -- corrects that so I believe the American consumer believes that's not gonna happen.
So this is the federal government -- businesses to sell their services arguably at a loss which will in turn.
Raise prices for consumers and consumers may lose benefits as well that -- absolutely bit disappointed should make the banks.
Charge for services that historically US -- that from -- why I'm not getting free checking.
Exactly free checking is gonna become a dinosaur.
You -- charges for ATM fees because he charges for checks because he perch so overcharges.
So they'll do what it does is going to be a lot less debit card swiping presumably.
We don't think so we think -- the end of the data debit card still has consumer appeal.
It's because we'll get much out of the banks -- -- -- as much out of it and what they're gonna have to do start charging for services provided I've got to say.
Yes -- we're we're fighting by trying to convince the US public that this is going to impact them in significant ways this this amendment went through.
Without any congressional hearing about any economic impacts your -- -- those it.
We want to -- I think about it we'd love to reverse it but we need it need dialogue that we need to think about it first.
-- need to get the American consumer to realize this is a fourteen.
That's -- I notice that he's.
Through my check out my accounts now.
I'm with the bank and they are common fast and furious at my credit because they -- good is that I get on -- credit card -- -- vastly reduced that's -- vastly reduced and that is that subject of that of the Durbin amendment that yes simply debit cards and all of this is happening before the Durbin amendment takes place and we don't have that amendment now.
It's it's a scheduled to take effect on July 21 annual finding it and fighting it -- a congressional testimony -- -- sixteenth.
The first time this will be heard.
In a public forum with due diligence and dialogue got a Republican House so you might get some attention might get some attention we're hoping for you gotta throw the money around them on the -- -- -- at that this is America.
How -- they were concerned about is is the under bank in the end -- being pushed out of the banking system that's at that point SharePoint so these these costs are gonna hit the -- single mom working did you know to raise two children.
Who can't afford twenty dollars a month for checking account or can't afford protecting -- can't afford to have a minimum deposit relationship with -- -- The push people out of banking system Christmas -- president of MasterCard US cycle that -- that's correct thanks very much for joining us Chris comes here again thank you sir appreciate it.
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