Debit rewards programs arealive and kicking despite their predicted death via the DurbinAmendment, according to a new study by Mercator Advisory Group.
The Durbin Amendment, which took effect in 2011 as part of theDodd-Frank Act, reduced debit interchange fees on card purchases, causing manyto predict the demise of debit rewards programs in order to make upfor lost revenue. But five years later, 50-60% of financialinstitutions in the U.S. offer debit rewards, Mercator found.
“We're seeing a return to checking accounts, for starters,” saidSarah Grotta, the director of Mercator's debt advisory service. “Aswe were going through the recession, we saw individuals leavingfinancial institutions as a whole, leaving checking accountsbehind. Now they're starting to return, so with checking accountsyou have a return of debit cards.”
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