The Durbin Amendment should mean huge savings and benefits to merchants!

The Durbin Amendment was written with merchants in mind. Card issuers charge less, merchants pay less. Seems simple enough. So as a merchant, the most important thing you can do is know your numbers and determine what you should be saving. This way, you can be sure you are not being taken advantage of by your card processor.

The Durbin Amendment was proposed by Senator Richard Durbin (D-IL) as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 to place a cap on interchange or transaction fees.

The average fee of 44 cents per debit card transaction charged to merchants by the card brands was considered excessive by supporters of the legislation. Those in opposition worked to stall or defeat the bill, but after much debate and a failed bill to delay interchange regulation, the final rule was handed down in late June. It goes into effect on October 1, 2011.

The final cap approved was 21 cents plus 0.05%, and an additional discretionary 1 cent for institutions employing effective fraud prevention initiatives. Though the final number was more favorable to the banks than the initially proposed cap, the Durbin Amendment represents a significant win for merchants like you.

The legislation was put into place to ensure the savings, your Durbin Dollars, will stay where they belong — in your bank account — so you can invest them how you see fit in your business.

The Redwood Project’s cost reduction solutions begin with a free analysis of your current Merchant banking fees to determine savings you deserve as a result of the Durbin amendment.

Call 609-433-4397 to schedule your free analysis now!