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The banking lobby will take care of this. They donate lots of money to politicians
Does anyone know the opposing argument? I mean, what’s Durbin’s rationale for pushing for this change?
The argument is roughly that merchants need to charge a higher price because they need to recoup the cost of the higher swipe fees.
In effect this results in higher costs for consumers, and since the price needs to be the same across the board consumers without premium cards are effectively helping to pay for those paying with the premium cards.
IMO the legislation won’t really benefit any consumers. Just a % of the profit will be shifted from financial institutions and those in the processing chain back to the merchant.