Durbin Amendment Destroying Credit Rewards
Ever since the Durbin Amendment was introduced in 2011, it created a big difference in terms of rewards between big banks and credit unions. The Durbin Amendment reduced fees from $0.44 to $0.21 for bigger banks on debit card fees to retailers. This has then limited the amount of rewards that consumers receive at bigger banks.
For example at Bank of America frequent flyer cards have been abolished due to the lack of money coming in from the Durbin Amendment. This has caused consumers to either try and find a new card, or just not use one at all.
This has caused a massive migration from big banks to credit unions for the people who are applicable. Yet so far the Durbin Amendment has not affected Credit Unions, but the owners know that in time if the Durbin Amendment isn’t stopped they will be affected. With the new installment of the Durbin Amendment the banks and credit card companies have been losing money, causing consumers to lose many of the rewards and benefits they used to always have.