released today by the Federal Reserve found that while debit swipe fee
reforms, commonly referred to as the Durbin Amendment, have successfully
exempted smaller institutions, the debit swipe fees collected by large banks
remain more than five times the cost associated with the transaction. Despite
the data, the Federal Reserve declined to revisit the issue at this time.
The report found that average cost to process a debit transaction was 5 cents,
yet the average actual fees collected on such transactions was 24 cents.
“While the data proves that the reforms have protected small institutions,
it reinforces retailers’ outrage that the Federal Reserve’s rulemakings are
deeply flawed,” Bill Hughes, senior vice president for government affairs.
“The Federal Reserve’s unwillingness to revisit their flawed rules despite this
compelling data is astounding and retailers will continue to use all means
necessary to ensure the reforms are implemented as the law intended.”
Debit swipe fee reform, passed by Congress in 2010, required the Federal
Reserve to ensure that the fees charged to merchants that accept debit cards,
be “reasonable and proportionate” to the cost of the transaction. The law
exempted 99 percent of all banks and applied only to those banks with more than
$10 billion in assets. In 2011, the Federal Reserve imposed rules that capped
debit swipe fees for non-exempt institutions at roughly 24 cents.
Full report: http://www.federalreserve.gov/newsevents/press/bcreg/20130305a.htm
RILA is the trade association of the world’s largest and most innovative retail
companies. RILA members include more than 200 retailers, product manufacturers,
and service suppliers, which together account for more than $1.5 trillion in
annual sales, millions of American jobs and more than 100,000 stores,
manufacturing facilities and distribution centers domestically and abroad.