Can the Durbin Amendment capping fee help your business?
Ramifications of the Durbin amendment have been experienced across whole nation. This has caused banks to increase debit account and checking account fees, eliminating various reward programs they used to offer and introduction of hidden fees to make up losses caused due to the Durbin amendment. Though it is sad to say still after so many hikes, the benefits of the Durbin amendment are not shared with consumers alike. The Durbin amendment was implemented with a good will that lower interchange fees on debit card will lead to increase in savings and which would be ultimately passed on to consumers. If you are a business owner, it is a must that you should know you capitalize the Durbin amendment.
Still after 6 months of the Durbin amendment implementation, many people are not aware with exactly it is. They would have cared hardly to notice a decrease in debit card swipe fees on monthly statement which you get from your provider. Let’s see impact of the Durbin amendment on consumers as well as businesses.
For consumers : The Durbin amendment implementation has been a mix bag for consumers, as on one hand they are getting charged lower interchange fees on the swipes but on the other hands, now free checking as well as various reward programs have been withdrawn. If your bank has more than $10 billion in assets, you would be effecting by all these changes. This is lead to shift of consumers from large banks to small banks which have less than $10 billion in assets as they are not affected by the Durbin amendment and are continuing to provide all benefits, they were providing to their consumers before the Durbin amendment’s implementation.
For merchants: For merchants, the Durbin amendment has been a mixed bag too. Due to withdrawal of various incentives and schemes on debit cards, now consumers prefer to pay in case, check or through a credit card. At present 35% of noncash transactions take place through debit cards but now, this number is bound to decrease.
Setting up minimum amount of purchase
As now after the Durbin amendment implementation, now merchants can deny credit as well as debit card payments for amount less than $10, option left with consumers is only paying through cash. Now if you have to purchase a bottle of water, now you need to have cash in your pocket.
Thus, it can be concluded that the Durbin amendment will be affecting your business.
Visit http://www.worldpay.us/Durbin.html to know impact of the Durbin amendment on all size businesses.
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