Posted on 09/28/2011 10:23:35 AM PDT by hga1234
After a rash of credit card identity theft schemes, the Durbin Amendment seems less tenable than ever. Interchange fees are, after all, levied to prevent and recoup losses after fraud. After Sony revealed that some PlayStation users’ credit card information was compromised, and arts and crafts chain Michaels reported that thieves had tampered with its debit card PIN pads, opponents of the Durbin Amendment used fraud costs as a rallying point.
“[Michael’s] is a prime example of the role that debit interchange plays in ensuring the payment system operates smoothly and efficiently for consumers and financial institutions,” said Dan Berger of the National Association of Federal Credit Unions in a letter to Senate leaders. “These issues aren’t being dealt with by Michaels. They are being dealt with by the card issuers.”
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