As a result of the recently passed Durbin Amendment, beginning on 10/1/11 the cost to process the majority of debit card transactions is dropping by an average of 45 percent. This means our average restaurant customer could save $2,000 per year if your credit card rates “pass through” these savings. Please understand that Credit Card companies are NOT required to pass on these savings and not all will. We believe the intent of the Durbin Amendment was to pass on 100% of these savings to you and can show you how to get it done. To get started, please contact your Retail Control Solutions salesperson or simply give us a call at 800-767-2212.
What is the Durbin Amendment?
The Durbin Amendment is part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, signed into law by President Obama on July 21, 2010. The Durbin Amendment required the Federal Reserve to propose a limit to interchange, or the amount issuing banks could charge merchants to process debit card transactions. The Federal Reserve issued its final ruling on June 29, 2011, capping the maximum fee a regulated issuer can receive from a single debit card transaction at $0.21/trans. plus .05 percent of the transaction dollar amount.
Will all debit transactions be affected?
The Durbin Amendment affects all debit card transactions, both signature and PIN, from debit card issuers with over $10 billion in assets, by capping rates at $0.21/trans. plus .05 percent. Issuers under $10 billion in assets may still charge the existing, unregulated interchange rates. Large issuers (over $10 billion in assets) account for 75 percent** of all debit transactions in the U.S., while small issuers (under $10 billion in assets) account for 25 percent. After the Durbin price cap takes effect October 1, the average cost to process a debit card transaction will drop from $0.44 to $0.24.
So give us a call at 800-767-2212 to start receiving these savings.