The Durbin Amendment, which caps the amount a bank network can charge a merchant to process a debit transaction, has resulted in large revenue losses for a few of America’s largest bank holding companies.
JPMorgan Chase & Co. saw its debit-fee revenue plummet by approximately $260 million in the fourth quarter to $1.12 billion, down from $1.38 billion in the third quarter, Forbes reports.
Bank of America Corp. reported a $441 million decrease in debit fee revenue, from $1.49 billion in the third quarter to $1.05 billion in the fourth quarter.
Wells Fargo & Co., the fourth largest bank in America, also saw declining revenue. The bank lost $337 million in interchange revenue in the fourth quarter, Forbes reports.
Some institutions, however, fared better under the increasing regulations. Both American Express Co. and Citigroup saw increases in interchange revenue, with American Express reporting an increase of $470 million in revenue and Citigroup reporting a scant $2 million increase in revenue in the fourth quarter.
SNL Financial said that both American Express and Citigroup “were left relatively unscathed because they either do not issue debit cards or debit interchange revenue is not a meaningful source of income for the companies,” according to Forbes.