One year after the Durbin amendment went into effect, financial institutions sayits cap on debit card interchange has not saved consumers any moneyand merely served to fatten retailer profits.

The law took effect Oct. 1, 2011.

A study from the Electronic Payments Coalition titled “Where'sthe Debit Discount – The Durbin Effect: Retailers Gain WithoutConsumer Benefit” reported that the Durbin Amendment's debit caphas saved retailers $8 billion since then, a windfall that thegroup, which includes credit unions, charged retailers have notpassed on to consumers.

As evidence, the group compared prices on various items atvarious retailers with prices on the same items one year before thecap went into place.

If the Durbin savings were being passed to consumers, the groupreasoned, those prices should be the same or less than they werelast year. Instead, the group said it found consumerspaid:

• $2.22 (or 6.6%) more for the same items at a Home Depot inAtlanta. Despite this retailer's claims to the contrary, itsshoppers saw price increases at this chain more than any other, theEPC said.
• $0.80 (or 5.4%) more for the same items at a Walmart inPortland, Maine.
• $1 (or 2.6%) more for the same items at a 7-Eleven inWashington, D.C.
• $0.30 (or 2.9%) more for the same items at a Walgreens inBoston.

“With a wink and a nod, giant retailers promised to lower pricesfor their customers if Congress passed the Durbin amendment. Oneyear after implementation, retailers have taken home $8 billionwhile many of their customers pay more at the register,” said TrishWexler, an EPC spokeswoman.

“Let's just call a spade a spade – this was a political handoutto big box retailers, who are now scrambling to make excuses forwhy they couldn't pass these savings along to customers,” Wexlersaid.

Retailers have also weighed in as the anniversary approachedwith their opinion that consumers have saved money because of the law.