How the Durbin Amendment Lowered Debit Card Fees
The Dubin Amendment went into affect on October 1, 2011. We are just starting to see the savings that some of our clients are relaizing due to the resulting reduction in debit card processing fees. Below are some examples from tw oof the clients that we have had the chance to run comparisons for:
September bill for client #1:
$502,024 in v/mc/disc sales
2.06% effective rate
October bill for client #1:
$531,613 in v/mc/disc sales
1.83% effective rate.
As a result of the Durbin amendment and the reduction in debit card processing fees the clietns bill was reduced by 11.16%.
September bill for client #2:
$24,236 in v/mc/disc sales
2.69% effective rate
October bill for client #2:
$14,359 in v/mc.disc sales
1.84% effective rate
The Durbin amendment resulted in savings of 31.5%
we are using these two examples so you cna see that both large and smaller companies have the opportunity to reduce their overall monthly debit card processing fees as a result of the Durbin Amendment
Remember - the Durbin Amendment reduces the cost of processing a qualified debit card from about .95% + $.20 per transaction down to roughly .05% + $.22 per transaction. On a $100 sale the old cost would be $1.15 and the new cost of processing the debit card would be $.27. This is a huge savings - and one that the business owner can ONLY take advantage of if they are on an interchange plus pricing structure.