In May 2012, the Federal Reserve released data for the first time on the practical financial effects of the Durbin Amendment, a reform bill implemented in October 2011 that aimed to lower the costs of debit card interchange fees for merchants. Card Hub’s 2012 Impact Study revealed that the Durbin Amendment has cost banks nearly $8.4 billion annually. The impact on small banks is significantly lower, with most losing an average of $329.4 million annually. Some large banks have reacted by eliminating debit card rewards and increasing checking account fees in an attempt to regain some of their losses.
Learn more about the results from the study on CardHub.com.