Tuesday, December 13, 2011

No Savings to Consumers from Durbin Amendment

The Electronic Payments Coalition released a study that shows that merchants are not passing along the savings from the price controls imposed on debit card transactions by the Durbin Amendment.

The report found that at least 76 percent of retailers included in the research have raised prices or kept them the same since the Durbin Amendment became effective on October 1. Retailers have reaped a windfall profit of about $825 million since the beginning of October.

The Electronic Payments Coalition includes credit unions, banks, and payment card networks that move electronic payments quickly and securely between millions of merchants and millions of consumers across the globe.

Read the study.

1 comment:

  1. This comes as a real surprise. Both Drubin & his side kick Barney Frank said retailers would pass the savings back to the consumer. Never happened. Now the banks make less interchange income & need to find new ways to stick it to the customer with more fees, higher fees. So now the consumer is paying more and getting less in return. Occupy Wall Street should throw a picket on the piss ants: Barney Frank & Durbin.

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