Consumers May Save As A Result of Debit Card Reform - Other News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Consumers May Save As A Result of Debit Card Reform

Consumers May Save As A Result of Debit Card Reform

Consumers May Save As A Result of Debit Card Reform
The content is accurate at the time of publication and is subject to change.

After all the Durbin-related doom and gloom consumers have been hearing about in recent weeks – namely the new fees on checking accounts and debit card use that are being introduced by many retail banks throughout the country – there may finally be a ray of sunshine in the form of savings.

“Retailers across the nation are developing a wide range of innovative ways to pass these savings along to their customers with lower prices and better value,” claimed Mallory Duncan, National Retail Federation senior vice president and general counsel said according to cspnet.

Prior to October 1 when Durbin went into effect, banks were able to charge retailers 1% to 2% of each transaction made by debit card, which averaged out to around 44 cents a swipe. Under the new law, debit card swipe fees have been capped at 21 cents, plus .05% of the total price and, in most cases, an extra penny for fraud prevention. Analysts have made estimates that merchants will wind up saving some $7 billion dollars annually as a result of the fee caps.

Many retailers are contemplating how to pass some of that savings along to their customers, and some are entertaining the possibility of offering discounts for debit card use, free or reduced fee deliver services overall lower prices and among other things.

“Change won’t come overnight, but consumers will definitely benefit. Reducing these fees will put billions of dollars back into the Main Street economy, helping American families stretch their paychecks and ultimately preserving and creating local jobs to keep America on the road to recovery,” said Duncan, reported cspnet.

However, that $7 billion also represents a substantial loss of revenue for banks. As a result, in the effort to recoup some of their losses several banks have announced that they will be increasing their fees for certain accounts and products, including a monthly fee for any debit cards transactions beyond ATM use.

“Every time Congress takes a step to protect consumers, the banks use it as an excuse to raise fees,” Duncan said to cspnet. “We’ve seen it when Congress limited late fees and overdraft fees and now we’re seeing it with swipe fees. Just as merchants and consumers are about to get some relief, they’re doing it again. That doesn’t mean Congress shouldn’t pass consumer protection laws. It speaks more to the nature of the card industry than to whether swipe fee reform should have been passed.”

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

New Travel Benefits for Mastercard World and World Elite Cardholders

Posted: October 18, 2018

Mastercard has upped the ante when it comes to travel for Mastercard World and World Elite cardholders by adding two new benefits into the mix. Now cardholders get access to Mastercard’s Hotel Stay Guarantee and Lowest Hotel Rate ... Continue reading
Paying Bills is Getting Easier with Mastercard Bill Pay Exchange

Posted: October 17, 2018

MasterCard is looking to help consumers pay their bills more easily and quickly with Bill Pay Exchange, a new digital solution they are launching. The Bill Pay Exchange will let people manage and pay all sorts of monthly bills ranging from ... Continue reading
Synchrony and JCPenney Are Still Partners

Posted: October 16, 2018

Synchrony and JCPenney have inked a multi-year deal extending their strategic partnership, which includes their private label credit card program and the JCPenney MasterCard. This extension means that the two will continue to work together ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate.
For Excellent, Good Credit
INTRO OFFER: Discover will match ALL the Miles you've earned at the end of your first year, automatically. For example, if you earn 30,000 Miles, you get 60,000 Miles. That's $600 towards travel!
For Excellent, Good Credit
Earn 2% cash back on purchases: 1% when you buy plus 1% as you pay
For Excellent, Good Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!