Durbin’s Ripple: How Fee Caps Reshaped Banking and Boosted Fintechs: Exploring the Unintended Consumer Impacts and Regulatory Gaps in the Wake of the Durbin Amendment

Authors

• Rebecca M. Reeve

Abstract

This Article explores the implications of the Durbin Amendment on consumer protection, financial innovation, and market competition. Initially intended to cap interchange fees and foster cost savings for merchants and consumers, the Amendment’s effects have diverged from its legislative intent. Financial institutions offset lost revenue by increasing other consumer fees, unintentionally spurring a financial technology (fintech) boom as consumers sought low-cost alternatives. This Article examines the administrative rulemaking challenges the Federal Reserve faced in implementing the Amendment, the rise of fintech solutions as a response to shifting bank priorities, and the potential regulatory gaps affecting consumer protection in a rapidly evolving financial landscape.

Recommended Citation

Reeve, Rebecca M. (2026) "Durbin’s Ripple: How Fee Caps Reshaped Banking and Boosted Fintechs: Exploring the Unintended Consumer Impacts and Regulatory Gaps in the Wake of the Durbin Amendment," Touro Law Review: Vol. 41: No. 1, Article 36.
Available at: https://digitalcommons.tourolaw.edu/lawreview/vol41/iss1/36