Durbin industry savings reported, consumer savings still missing

Dick Durbin

Though the National Retail Federation reported last fall that customers and retailers could expect to see $7 billion in savings as a result of the Durbin Amendment, the savings have yet to materialize for American consumers.

Retailers said that approximately 15 percent of them are paying less as a result of the Durbin Amendment, while approximately 18 percent of retailers said that they’re paying more. The Durbin Amendment capped interchange or swipe fees — the amount a bank can charge a retailer to process a debit transaction — at 24 cents, a little less than half of the previous rate, Time reports.

The NRF said that consumers have not seen the savings because the Fed did not adopt the group’s proposed cap between seven and 12 cents.

“We believe the numbers for the big banks are too high,” NRF Senior VP and general counsel Mallory Duncan said, adding that a lower cap would translate to “significantly greater savings for merchants and their customers,” according to Time.

Payment processors, however, argue that retailers have indeed seen savings as a result of the provision but have not passed them to consumers. Data from the Electronic Payment Coalition reveals that retailers have already saved close to $3 billion as a result of the Durbin Amendment.

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