On Friday President Trump issued an executive order calling for a review of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The existing law put in place a large number of financial rules and regulations that effect all sorts of businesses, including Southbay Restaurants.
One example is the Durbin Amendment which regulates the fees local restaurants are charged when a customer uses a bank debit card to pay their bill or bar tab. The current law has been instrumental in keeping those fees low. Any change to the law could permit banks to substantially increase those fees eating into already thin restaurant margins. The National Restaurant Association has publically urged the president not to do away with the Durbin Amendment. Leslie Shedd, vice president of communications for the NRA, said in the statement “As discussions on Dodd-Frank continue, we also strongly urge the Trump Administration and Congress to keep the current debit swipe-fee protections in place. Repealing these protections, as some members of Congress are discussing, would impose a significant tax on small businesses”.
While only large banks are effected by the existing regulations, it remains to be seen what view the administration intends to take concerning the Durbin Amendment and any other provisions regulating consumer fees. Any increase in fees could have a vastly detrimental effect on small business. The SBRA urges full and thoughtful consideration of the effect of any such change upon its members and urges its members to stay informed and committed to voicing your opinion to your representatives as the proposed changes are considered.