GS Logo
The Green Sheet, Inc

Please Log in

A Thing
View Archives

View PDF of this issue

Care to Share?

Table of Contents

Lead Story

Winning the high-stakes holiday shuffle


Industry Update

New ROAM CEO focusing company

Happy complicated first birthday, Durbin

Visa, MasterCard settlement has support

A window into Global Payments

Trade Association News


What you need to know before launching a new product

Marc Beauchamp
Performance Training Systems Inc.

A rewards app that 'burns'

Selling Prepaid

Prepaid in brief

MasterCard reloads with Western Union

How to drive a positive customer experience – and silence critics


Is there a kiosk in your pocket?

Patti Murphy
ProScribes Inc.


Street SmartsSM:
Formal sales training or OJT?

Jeff Fortney
Clearent LLC

Fraud alert: Threat level rises

Nicholas Cucci
Network Merchants Inc.

Shifting to insight-selling

Dale S. Laszig
Castles Technology Co. Ltd.

Tighten merchant inventory control, boost the bottom line

Rick Berry
ABC Mobile Pay Inc.

Implementing 3-D Secure

Chandan Mukherjee
PayCube Inc.

Company Profile

Washington Bancard Merchant Services LLC

New Products

Next-gen POS doubles as fundraiser

V8 by Dejavoo Systems
Unified Payments LLC

E2EE protection for EMV, too

SAFE-T Suite
Elavon Inc.


Strategic honesty



Resource Guide


A Bigger Thing

The Green Sheet Online Edition

October 22, 2012  •  Issue 12:10:02

previous next

Happy complicated first birthday, Durbin

Oct. 1, 2012, marked one year since implementation of the Durbin Amendment to the Dodd-Frank Act, and the debate over debit card interchange regulation is as contentious as ever. Depending on whom you ask, the Durbin Amendment has lowered merchants' debit card acceptance costs, resulting in savings being passed on to consumers, or it has done nothing of the sort. The Merchants Payments Coalition, which backed the legislation, said retail profit margins have declined since the amendment was implemented and concluded this indicates savings are being passed on to consumers. As an example, the MPC gave the Home Depot U.S.A. Inc., which said lower operating costs due to debit interchange reform led to price cuts on 3,000 items.

The MPC also cited gas stations, where station operators are taking advantage of lower processing costs for debit card transactions by offering customers discounts to get them to pay with debit cards.

"Debit swipe fee reform has been a win for consumers and Main Street businesses, especially small businesses," said Mallory Duncan, Senior Vice President and General Counsel for the National Retail Federation and Chairman of the MPC. He added that "where fees are lower, prices are lower."

Fees down, prices up?

But the Electronic Payments Coalition, which represents the financial services industry, said the $8 billion retailers have saved in processing costs over the last year have not been passed on to consumers in the form of lower prices; in fact, consumers are paying an average of 1.5 percent more for goods and services since the amendment's implementation.

The EPC conducted field research on the matter. To compare retailers' prices before the amendment's enactment to after, 36 shopping trips were undertaken to 18 stores nationwide, where the same items were bought pre- and post-Durbin. The research showed that, of the retailers visited, 67 percent either raised prices on those same items, or kept prices the same.

EPC spokeswoman Trish Wexler said, "With a wink and a nod, giant retailers promised to lower prices for their customers if Congress passed the Durbin Amendment. ... Let's just call a spade a spade - this was a political handout to big-box retailers, who are now scrambling to make excuses for why they couldn't pass these savings along to customers."

Battling bank rating sites

The MPC also cited new data from that shows debit interchange reform did not affect what banks charge for their services. The MPC quoted a representative of the National Grocers Association, who said fluctuations in checking account fees and other fees are "fundamentally the same" post-Durbin as they were pre-Durbin.

However, the EPC said a recent survey found that checking account costs for consumers rose dramatically post-Durbin, "with some bank fees rising 25 percent or more," due in part to regulations limiting overdraft and debit card interchange fees.

For additional news stories, please visit and click on "Read the Entire Story" in the center column below the latest news story excerpt. This will take you to the full text of that story, followed by all other news stories posted online.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

previous next

Spotlight Innovators:

North American Bancard | Simpay | USAePay | Impact Paysystems | Board Studios