A Thing
The Green SheetGreen Sheet

Thursday, February 23, 2012

Customers say retailers don't return Durbin savings

A survey of 1,000 adults conducted by Ipsos SA Public Affairs for the American Bankers Association found only 7 percent of respondents believe retailers are passing savings from recent debit interchange cuts on to consumers. The survey was released Feb. 20, 2012.

In accordance with the Durbin Amendment to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, the Federal Reserve determined a reasonable and proportional rate for debit interchange was 21 cents plus a small allowance for fraud prevention measures. This amounted to approximately half the old interchange rate of an estimated 44 cents. The new rate went into effect Oct. 1, 2011.

Trish Wexler, spokeswoman for the Electronic Payments Coalition, said, "Congress gave giant retailers a handout with no guarantee that the savings would be given back to consumers. The Durbin Amendment has been in effect for over four months, and these survey results go to show that retailers are simply lining their pockets with an extra $3 billion in profit."

In addition, the EPC released a field research report in December 2011 that compared prices before and after implementation of the debit interchange regulations. The research found that 76 percent of the retailers surveyed either raised prices or kept them the same after the amendment was implemented. end of article

The Green Sheet Inc. is now a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals. Click here for more information.

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 Contact names or information may be out of date.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

Facebook
Twitter
LinkedIn
2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
A Thing