The Affect On Consumers
Sunday, November 6th, 2011The Durbin Amendment to the Dodd Frank Act, went into effect on October 1, 2011. The purpose of this legislation was to put a cap on debit transaction fees That Their processors can charge Pls merchants accepting debit or check cards for the payment of goods / services. Consequently, this stamp has put some big hurt on card issuing banks by greatly reducing the revenues They receive on these transactions. You see, every time you use your debit or credit card, the card issuing entity receives what is Referred to as the Interchange Fee. As a result of this lost revenue (reported to be in the multiple billions of dollars) most banks are looking for, or already have, initiated or eliminated fees other rewards on these cards to make up for the loss.