Deeply frustrated with the might of the banking industry on Capitol Hill, Sen. Dick Durbin is working hard in Washington to even out the playing field for consumers. In an article for Politico today, Victoria McGraine confirms that the senior senator will continue to fight the credit card companies over what are known as interchange fees:

Durbin vows that he’s pushing ahead with two other measures that the financial industry opposes in the name of consumer protection. One would make it easier for merchants to give consumers discounts when they pay with cash, check or debit card rather than a credit card.

Currently, businesses sign into agreements with banks when they agree to accept major credit cards that require them to pay a percentage of each transaction to the credit card companies. The regulations on the books allow merchants to provide a discount to customers using cash.  But many retailers and consumer groups say the rules included in the agreements are deliberately complex so as to make it nearly impossible to do so. As a result, small business owners must pass along the charge to all their customers or swallow the fee themselves. And the rates -- usually between two and three percent -- are much higher in the United States than elsewhere around the world.  

Durbin's proposal would make the discount process easier for merchants and extend the eligibility to those using debit cards.  Other Democratic leaders balked at this reform when negotiating the contents of the recently-passed credit card reform bill, but Durbin apparently isn't giving up. 

Illinois' senior senator also told Politico that he's waiting for "the right time and place” to bring to the floor S. 500, his bill to establish a maximum 36 percent annual percentage rate (APR) on all consumer credit transactions. He introduced the bill in February and received strong support from state and national consumer advocacy organizations, who agree with the senator that the interest rates lenders are charging for a host of loans "are nothing short of outrageous." Although some are skeptical that a bill this strong could pass both chambers, it's a fight worth tracking.