The Durbin-Obama Debit Card Fee

They "Care" About You

It’s time we come recognize the people who are making a difference in our lives.    In this case, it’s a negative difference, and while the banks are going to get blamed, the idea here is to give credit (or place blame) where it is due.  Dick Durbin, D-Ill., helped to create the circumstance by which new Debit fees will be necessitated by banks to pay a new tax assessed against them under the Dodd-Frank Financial reform act.  You should feel much better knowing that as consumers, you’re being “protected” by the machinations of big government.  Of course, that the demagoguery they used to sell all of this, but now the sad truth is out:  You’re going to pay more for the pleasure of access to your own money.  Don’t complain.  Thank Dodd, Durbin, Frank, and Obama.

Durbin’s Amendment to the bill was the cause.  You’ve heard about Bank of America tacking on a $5/month fee to account-holders for debit card use?  They won’t be alone, but it’s not because of pure profit-seeking whimsy.  It’s the result of Dick Durbin, Christ Dodd, Barney Frank, and anybody who voted for the Financial Reform Act.  Barack Obama signed it into law.  Now, you need to understand that all of this is simply because they care about you, and wish to punish the “greedy bankers,” which is a notion that appeals to the absurd goons now protesting on Wall Street.

Be happy!  This is your government at work.  This is the change you hoped for, isn’t it?  No?  Ladies and gentlemen, this is an example of the whole problem with big government employed by demagogues who are simply making an appeal to dolts on the basis of class envy.  This is the sick heart of the ideology of statism.  People will blame Bank of America, but the truth is that this was done to you by the Democrats pictured above, along with a larger number not pictured in Congress who inflicted this upon you.  Durbin actually had the nerve to urge people to dump the Bank of America.

Whenever we see politicians behave in this way, we should grab our wallets.  There’s seldom a time when the costs they inflict on business won’t ultimately fall to us to pay.  That’s a lesson all of the protesters on Wall Street and elsewhere ought to understand.

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  • pjm

    New tax what are you talking about.?! The Durbin bill limits the amount that the bank can charge a merchant for accepting a debit card. Currently merchants pay approx 1% on the transaction to the bank, and another .15 to the merchant processor. The average the banks now receive is .44… this will now be lowered to .21 (capped at). Any transaction under $20 will not see a difference. in the fee charged.

    As a response the Banks are going to charge customers to to use debit cards, or do more to promote the us of credit cards that they still receive anywhere from 1.75 to 3.5% per transaction.

    The Big Retailers went against the Big Banks and the retailers won. All the small business, and Mom & Pop stores will also benefit. And if you believe in a free market pricing structure, the consumer will benefit at the register. The bottom line you were paying the fee, as it was passed along by the merchant to you as a consumer. Now, the merchant will still pay some of the fee, and the banks may charge you the rest directly in the form of fees. But you can change banks, if they choose to levy the fee… and find a bank that is not charging the fee. It creates a more transparent system..

    I am not a fan of Gov't intervention, but at the same time it's hard to defend a business model that charges fees to consumers in such a indirect manner. Banks subsidize credit card miles, perks and lately debit card perks on the back of merchants… who then charge consumers at the register. Inflationary pressure is the result.

    • http://www.markamerica.com MarkAmerica

      pjm, It's this simple: The government is driving up costs to the banks. They are looking to recover that money elsewhere. The point is that consumers will now see a line-item fee on their accounts, and will naturally blame the banks, but that's not true, is it? Here's the bottom of the line truth in all of this: The consumer always pays. Always.