When will these people learn? This regulation will have negative unintended consequences on consumers. First, before I even say anything about that, I want to know how far in the pockets of special interests is Senator Dick Durbin (D-IL), the politician who proposed this amendment? He must be a hit with retailers.
This is not a win for consumers, as fans of this regulation suggest. It opens up all kinds of incentives for credit card issuers to charge more for other services, for special interests such as this person and the industry being regulated to lobby for more or different rules, it empowers the politicians who can play of these special interests for their own gain.
Banks and other credit card issuers will figure out ways around this regulation by jacking up fees on other products, discontinuing less profitable products, or both. In short, consumers will pay more for fewer choices on how to finance certain transactions.