PURCHASE, N.Y.--(BUSINESS WIRE)--MasterCard said today it is pleased that members of the House Financial Services Committee are examining the ramifications of the Durbin Amendment and the impact the proposed Federal Reserve Rule will have on consumers as well as financial institutions of all sizes. Debit cards are a popular form of payment and unfortunately, consumers are already seeing the impact of the proposed rule with a reduction of benefits including the loss of free checking and an increase in fees.
“The government establishing price controls rather than letting the free market system work will result in consumers paying for virtually all of the costs for the benefits merchants receive today, which amount to well in excess of $14 billion.”
“We are encouraged that members of Congress on both sides of the aisle are calling into question the Durbin Amendment and that the consequences for consumers are being evaluated. Changes of this magnitude warrant serious thought and analysis and we hope that if Congress re-examines the Amendment and studies the effects, they will see that the harms far exceed any perceived benefits and it will ultimately be repealed,” said Noah J. Hanft, MasterCard general counsel. “The government establishing price controls rather than letting the free market system work will result in consumers paying for virtually all of the costs for the benefits merchants receive today, which amount to well in excess of $14 billion.”
About MasterCard Worldwide
As a leading global payments company, MasterCard Worldwide prides itself on being at the heart of commerce, helping to make life easier and more efficient for everyone, everywhere. MasterCard serves as a franchisor, processor and advisor to the payments industry, and makes commerce happen by providing a critical economic link among financial institutions, governments, businesses, merchants, and cardholders worldwide. In 2010, $2.7 trillion in gross dollar volume was generated on its products by consumers around the world. Powered by the MasterCard Worldwide Network – the fastest payment processing network in the world – MasterCard processes over 23 billion transactions each year and has the capacity to handle 140 million transactions per hour, with an average network response time of 140 milliseconds and with 99.99 percent reliability. MasterCard advances global commerce through its family of brands, including MasterCard®, Maestro®, and Cirrus®; its suite of core products such as credit, debit, and prepaid; and its innovative platforms and functionalities, such as MasterCard PayPass™ and MasterCard inControl™. MasterCard serves consumers, governments, and businesses in more than 210 countries and territories. For more information, please visit us at www.mastercard.com. Follow us on Twitter: @mastercardnews.
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