“Regulated banks were more likely to raise checking account fees, but exempt banks were more likely to reduce or eliminate fees.” Sullivan wrote. “Thus, consumers' net increase in access to free checking stemmed mainly from the greater availability of free checking at exempt banks.

“At some banks, both regulated and exempt, there were also other changes in the terms of the checking accounts offered to consumers. This article finds evidence that access to free checking has expanded most in cities and regions where banks are engaged in vigorous competition: banks in such markets may offer free checking to attract customers from other banks or to ensure retention of their own established customers.”

The study only included banks in the grouping of financial institutions which live under the cap as well as those who do not.

The Merchant Payments Coalition, an association of retailers and retail associations which lobbied Congress before the Durbin cap and who defends the idea of a debit cap, celebrated the study.

“This important study puts to rest the myth that big banks use to complain about reform limiting their ability to fix prices. The bottom line is that consumers win and competition is strengthened when debit fees are reduced,” said Doug Kantor, counsel to the Merchants Payments Coalition.