Payments News

Network Fee Boosts Are Taking a Big Bite out of Merchants’ Durbin Savings, Research Says

Feb 25, 2019

A bevy of fees levied by the two major card networks is offsetting much of the fee relief merchants receive from the 7-year-old Durbin Amendment, according to new findings from a payments-research firm that is studying the issue on behalf of the retail industry.

While the Durbin caps on debit card interchange fees for big banks should have delivered $9.37 billion in annual savings based on total estimated debit volume this year, the yearly benefit net of new fees and fee boosts from Visa Inc. and Mastercard Inc. is actually $4.6 billion, or less than half what merchants might have expected to reap, estimates CMS Payments Intelligence Ltd., which maintains offices in Manchester, United Kingdom, as well as Atlanta and specializes in data on merchant-acceptance costs.

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