Retailers Take Durbin Victory Lap

Retailers are taking their Durbin amendment victory lap.

The debit swipe fee cap, which went into effect Oct. 1, topped a list of five legislative victories in 2011 for the Retail Industry Leaders Association.

The Federal Reserve set a 21-cent fee cap per debit transaction earlier this year.

The move came after Sen. Dick Durbin, D-Ill., successfully added a provision to the Dodd-Frank Act to "ensure that the fees that small businesses and other entities are charged for accepting debit cards are reasonable and proportional to the costs incurred."

RILA says that this year it "successfully defended" the Durbin amendment "from an aggressive attempt by the banks to undo critical debit swipe fee reforms," according to the legislative victories list.

Durbin opponents failed to get the necessary votes in the Senate to overturn the amendment this summer, following intense lobbying on both sides.

As recently as mid-October, legislation aimed at undoing Durbin made a splash in the House, though few had high hopes for the late-game repeal after the earlier loss in the Senate.

The retailers group adds that interchange is only "the first front in the war to bring competition to the electronic payments market."

Psyching up the troops, RILA says it will build on the debit card victory and even "extend these reforms to credit cards." Not exactly a catchy battle cry, but it will probably still work.