Heartland Payments Systems, a leading merchant paymentsprocessor, estimates that merchants will save at least $1,000 ondebit interchange in the wake of regulations implementing theDurbin Amendment.
|The processor reported that between Oct. 1 and Oct. 11, it haspassed on $5,532,318 in savings from the regulations to itsmerchant clients, with $1,992,770 going to restaurant owners.
|Based on the transactions in that 10-day period, the processorestimated that 64% of its debit traffic came from cards issued byfinancial institutions under the cap and that 36% came fromfinancial institutions that are not under the cap.
|Debit card interchange for capped financial institutionsaveraged 23 cents per transaction and debit interchange to non-capped institutions averaged 43 cents, the processorsaid. This translated into an effective debit interchangerate for capped institutions of 0.83% and 1.57% for non-cappedinstitutions.
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