The Senate will have its first opportunity to undo – or at least delay – one of the most outrageous elements of the disastrous Dodd-Frank financial takeover legislation soon, perhaps as soon as this week.
The issue is whether the Federal Reserve should impose 12-cent price controls on debit card transactions. The current average fee, determined by the free market, is about 44 cents.
The drastic price control will, as price controls always do, cause shortages and inefficient allocation of resources. In particular, it will spur the elimination of free checking accounts, free debit cards, and debit card rewards programs. It will also result in less investment and less innovation in payment networks, including fraud monitoring and other value-added features that now won’t be invented because of the price control.
Smaller banks will be hit the hardest. Fed Chairman Ben Bernanke said: “It's going to affect revenue of small issuers. And it could result in some smaller banks being less profitable or even failing.”
That’s the last thing the economy needs right now.
I need your help to convince Senator Shaheen to stop the debit card price control.
CLICK HERE for more information and to take action.
Corey R. Lewandowski
New Hampshire State Director
Americans for Prosperity