The Federal Reserve today issued the final rules on the Durbin Amendment, and it's an ultimate win for retailers, although I predict some battles to come from the banking industry and consumers before the dust settles.
The Amendment, part of the sweeping Dodd-Frank financial overhaul legislation, allows the Federal Reserve to put limits on the interchange fees that merchants pay banks when you swipe your debit card at their cash registers.
Today, those fees are ranging between 1 percent and 2 percent of the amount you purchase and have added up to $16.2 billion that merchants paid in 2010. As of October 1, 2011, the planned effective date for the new rule, those fees will be a maximum of 21 cents plus 0.05 percent, nearly 48 percent lower than before for a typical transaction of $40.
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