A new study released on Tuesday showed that retailers did pass on the savings of debit card swipe free reform to consumers, resulting in a boost in consumer spending and job creation.
The study also suggested, however, that consumers and the economy could have seen even greater benefits if the Federal Reserve had lowered the cap on debit swipe fees to the amount instructed by Congress.
“This is clear evidence that retailers have seen significant savings from swipe fee reform and that they’re sharing that savings with their customers in a variety of ways,” NRF Senior Vice President and General Counsel Mallory Duncan said. “That’s a huge improvement over where we were before reform, and both consumers and the economy are better off. But the savings could have been far greater for retailers and consumers alike if the Federal Reserve had capped debit swipe fees at the level intended by Congress. The fight to bring swipe fees under control is far from over.”
Last year, retailers saved $8.5 billion in debit card swipe fees, passing $5.87 billion of the savings on to consumers. Consumer spending increased, as did demand for goods and services. Retailers hired more workers and created approximately 37,500 new jobs.
The study was written by Sonecon Chairman Robert J. Shapiro.