Financial experts are busy studying the impact of the Durbin Amendment and remain uncertain that it will actually save merchants money.
What is known for certain is that the Durbin Amendment imposed a $0.21 debit transaction fee cap and allowed merchants to impose a $10 transaction minimum. In addition, it permitted a cash discount for customers who pay cash or use a debit card, according to Reuters.com.
Reports indicate that merchants are already saving millions of dollars but new moves made by large banks may soon cost merchants more than they were paying originally in interchange fees.
Bank of America’s new fee on debit card transactions has speculators predicting reluctance among consumers to make impulsive purchases, according to Reuters.com.
Another scenario described by financial experts would be if consumers can pay a lower price while purchasing with cash, they may leave the retailer and go to another retailer once they have cash. If a consumer chooses to pay with a credit card, the merchants must still pay those interchange fees to the banks and card issuers.
In addition, many card companies have gotten rid of their smaller purchase interchange rate. As a result, merchants will start paying higher transactions fees on small-ticket purchases, such as sodas, coffees and candy.