The Durbin Amendment isn't saving most merchants much money on debit interchange fees, and the few that are saving money aren't passing those savings on to consumers, according to a new study released by the Federal Reserve Bank of Richmond.

The amendment, which is part of the Dodd-Frank Act and took effect in 2011, put a cap on debit interchange fees in an effort to reduce the cost of accepting card payments. The move was publicized as a way to help merchants and in turn consumers, who would – at least in theory – benefit from lower prices.

But the survey, performed in partnership with Javelin Strategy & Research two years after the regulation was established, found that less than 10% of the 420 merchants in 26 sectors surveyed for the study saw a decrease in their debit costs.

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Payments/Credit/Debit