Businesses across the country have benefited from the swipe fee cap imposed by the Durbin Amendment but the savings are not expected to last.
Heartland Payment Systems, the fifth largest payment processor in America, reports that merchants nationwide saved, on average, $260.24 for every $100,000 in Visa and MasterCard transactions during the first two weeks after the cap took effect, according to the Washington Post.
Retailers may not enjoy these benefits for long. Since its inception, the Durbin Amendment has taken criticism from all sides.
Banks across the nation have warned against the rule, one of the reasons that the Durbin Amendment may be tossed out. Banks stand to lose almost $10 billion in revenue due to the fee cap.
In response, banks began charging fees in other areas, such as the $5 monthly fee on debit card usage proposed by Bank of America. Similar exploits may follow in the future.
Other critics argue that there are too many holes in the legislation. The Durbin Amendment only applies to banks with $10 billion or more in assets. Financial institutions with fewer assets are not subject to the same rules, an issue that has arisen many times during the course of conversation and may affect the measure's future, the Washington Post reports.