Investopedia

Continue to Site »

Durbin Amendment

Filed Under » , ,
Dictionary Says

Definition of 'Durbin Amendment'

A part of the Dodd Frank Wall Street Reform and Consumer Protection Act that limits transaction fees imposed upon merchants by debit card issuers. The Durbin Amendment, named after U.S. Sen. Richard J. Durbin and introduced in 2010, proposed to restrict these interchange fees, which averaged 44 cents per transaction based on 1 to 3% of the transaction amount, to 12 cents per transaction for banks with $10 billion or more in assets.

Investopedia Says

Investopedia explains 'Durbin Amendment'

The amendment was based on the belief that interchange fees were not reasonable and proportional to card issuers' costs. When the bill became law in 2011, interchange fees were capped at 21 cents per transaction plus 5% of the transaction amount. Some banks implemented new fees and eliminated free services in an attempt to offset their interchange fee revenue losses.

Articles Of Interest

  1.

    Take Control Of Your Credit Cards

    The plastic in your wallet doesn't have to hurt your finances. Learn how to manage it responsibly.

  2. Understanding Credit Card Interest

    Paying these rates can impact your disposable income and your investment returns.

  3. Store Credit Cards: Do The Incentives Pay Off?

    Check out the pros and cons behind store credit cards; they might actually help you save money.

  4. Government Regulations: Do They Help Businesses?

    These rules are in place to protect consumers and help businesses thrive at the same time.

  5. The SEC: A Brief History Of Regulation

    The SEC has continued to make the market a safer place and to learn from and adapt to new scandals and crises.

  6. Free Markets: What's The Cost?

    Some argue that when the free market fails to protect consumers, government regulation is required.

  7. What's On A Consumer Credit Report?

    A look at the various components and considerations that go into one's credit report and credit score.

  8. 7 Unconventional Ways Businesses Can Borrow Money

    Find out how your business can get the money it needs - even when the bank says "no".

  9. Should You Add A Securities License To Your Qualifications?

    Clients love planners who sell securities, but a securities license takes a lot of work. Learn if the stress and study are worth it.

  10. How To Report A Tax Cheat

    If you report a tax evader to the IRS, you could be eligible for a reward.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  2. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  3. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  4. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  5. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.

  6. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.
Trading Center