Business Owners and Consumers Reap Financial Benefits One Year After Reform’s Implementation
PRINCETON, N.J.--()--Since the implementation of the Durbin Amendment debit swipe fee reform one year ago, Heartland Payment Systems®(NYSE: HPY), one of the nation’s largest payments processors, has delivered more than $262,000,000 in signature debit savings to its merchant customers throughout the United States. Of these savings, restaurant merchants received more than $75,000,000, lodging merchants received nearly $10,000,000, retail merchants received almost $30,000,000 and petroleum/c-store merchants received more than $55,000,000.
“Both business owners and consumers are feeling the relief of lower debit card swipe fees”
Designed to reduce the cost of accepting debit cards for business owners, the Durbin Amendment, part of the Dodd-Frank Wall Street Reform Act, caps debit card interchange rates for issuing banks with more than $10 billion in assets at 21 cents per transaction, plus one cent for issuers with an effective fraud prevention system, and 0.05 percent of the volume of transaction – a significant reduction from the average of 44 cents that merchants paid per debit card purchase before the Durbin Amendment.
“Both business owners and consumers are feeling the relief of lower debit card swipe fees,” said Bob Carr, Heartland’s chairman and CEO. “Our merchant customers are putting their ‘Durbin Dollars’ to work in a variety of ways, such as opening new locations, purchasing new equipment, fixtures and delivery cars, offsetting rising fuel and food costs and more. Consumers are also benefitting from our merchants not raising prices, and from non-Heartland merchants such asHome Depot, which lowered prices as a result of overall lower operating costs thanks in part to the regulation.”
John Bertram, owner of Stuft Pizza Bar & Grill in La Quinta, Calif., added, “The cost of everything, especially food, has gone up but our processing expenses have gone down. Thanks to Heartland passing through the Durbin savings, which have totaled more than $10,000 since last October, we’ve been able to keep our menu pricing the same for consumers and are exploring options for opening a second location.”
While actual figures are determined by the volume and dollar amount of debit transactions, among other factors, on average, Heartland’s merchants are saving approximately $1,000 annually per location. In aggregate, these funds represent a significant capital infusion for state and local economies, as evidenced by the data below:
Total Estimated Visa/MasterCard Total Estimated Visa/MasterCard State Signature Debit Savings From State Signature Debit Savings From October 1, 2011 to October 1, 2012 October 1, 2011 to October 1, 2012 Alabama $3,128,008.81 Nebraska $1,792,116.33 Alaska $436,918.03 Nevada $2,432,318.72 Arizona $4,085,964.61 New Hampshire $2,211,263.97 Arkansas $2,597,690.14 New Jersey $9,235,381.32 California $35,869,653.50 New Mexico $2,029,720.89 Colorado $9,696,452.99 New York $12,851,067.58 Connecticut $3,815,857.53 North Carolina $9,686,732.55 Delaware $1,100,635.87 North Dakota $1,013,882.45 Florida $16,226,788.58 Ohio $13,224,699.82 Georgia $6,216,842.88 Oklahoma $4,935,040.37 Hawaii $2,889,527.93 Oregon $2,656,695.82 Idaho $1,402,889.57 Pennsylvania $7,673,562.51 Illinois $7,910,343.27 Rhode Island $718,408.62 Indiana $5,019,086.03 South Carolina $3,568,525.18 Iowa $1,903,029.03 South Dakota $466,120.48 Kansas $2,440,317.42 Tennessee $3,603,861.04 Kentucky $2,998,260.14 Texas $16,001,736.30 Louisiana $3,681,775.35 Utah $2,092,468.38 Maine $957,519.18 Vermont $498,679.25 Maryland $5,326,935.57 Virginia $8,678,594.53 Massachusetts $6,110,649.15 Washington $6,096,824.00 Michigan $6,449,646.17 Washington, D.C. $541,439.16 Minnesota $6,240,136.93 West Virginia $420,287.21 Mississippi $1,614,612.92 Wisconsin $2,706,400.88 Missouri $8,011,641.55 Wyoming $379,443.63 Montana $1,127,904.22
Heartland also found:
- 60 percent of its signature debit sales volume qualified as regulated
- 64 percent of its PIN debit volume qualified as regulated
- On average, there is a savings of $0.19 per transaction for regulated (vs. non-regulated)
- The average signature debit non-regulated interchange fee per transaction is $0.42
- The average signature debit regulated interchange fee per transaction is $0.23
- On average, there is a savings of 68 basis points for regulated (vs. non-regulated)
- The average signature debit non-regulated effective rate is 1.48 percent
- The average signature debit regulated effective rate is 0.80 percent
For more information on the Durbin Amendment and its benefits, visit www.GetYourDurbinDollars.com.
Business Owners and Consumers Reap Financial Benefits One Year After Reform’s Implementation
PRINCETON, N.J.--()--Since the implementation of the Durbin Amendment debit swipe fee reform one year ago, Heartland Payment Systems®(NYSE: HPY), one of the nation’s largest payments processors, has delivered more than $262,000,000 in signature debit savings to its merchant customers throughout the United States. Of these savings, restaurant merchants received more than $75,000,000, lodging merchants received nearly $10,000,000, retail merchants received almost $30,000,000 and petroleum/c-store merchants received more than $55,000,000.
“Both business owners and consumers are feeling the relief of lower debit card swipe fees”
Designed to reduce the cost of accepting debit cards for business owners, the Durbin Amendment, part of the Dodd-Frank Wall Street Reform Act, caps debit card interchange rates for issuing banks with more than $10 billion in assets at 21 cents per transaction, plus one cent for issuers with an effective fraud prevention system, and 0.05 percent of the volume of transaction – a significant reduction from the average of 44 cents that merchants paid per debit card purchase before the Durbin Amendment.
“Both business owners and consumers are feeling the relief of lower debit card swipe fees,” said Bob Carr, Heartland’s chairman and CEO. “Our merchant customers are putting their ‘Durbin Dollars’ to work in a variety of ways, such as opening new locations, purchasing new equipment, fixtures and delivery cars, offsetting rising fuel and food costs and more. Consumers are also benefitting from our merchants not raising prices, and from non-Heartland merchants such asHome Depot, which lowered prices as a result of overall lower operating costs thanks in part to the regulation.”
John Bertram, owner of Stuft Pizza Bar & Grill in La Quinta, Calif., added, “The cost of everything, especially food, has gone up but our processing expenses have gone down. Thanks to Heartland passing through the Durbin savings, which have totaled more than $10,000 since last October, we’ve been able to keep our menu pricing the same for consumers and are exploring options for opening a second location.”
While actual figures are determined by the volume and dollar amount of debit transactions, among other factors, on average, Heartland’s merchants are saving approximately $1,000 annually per location. In aggregate, these funds represent a significant capital infusion for state and local economies, as evidenced by the data below:
| Total Estimated Visa/MasterCard | Total Estimated Visa/MasterCard | ||||
| State | Signature Debit Savings From | State | Signature Debit Savings From | ||
| October 1, 2011 to October 1, 2012 | October 1, 2011 to October 1, 2012 | ||||
| Alabama | $3,128,008.81 | Nebraska | $1,792,116.33 | ||
| Alaska | $436,918.03 | Nevada | $2,432,318.72 | ||
| Arizona | $4,085,964.61 | New Hampshire | $2,211,263.97 | ||
| Arkansas | $2,597,690.14 | New Jersey | $9,235,381.32 | ||
| California | $35,869,653.50 | New Mexico | $2,029,720.89 | ||
| Colorado | $9,696,452.99 | New York | $12,851,067.58 | ||
| Connecticut | $3,815,857.53 | North Carolina | $9,686,732.55 | ||
| Delaware | $1,100,635.87 | North Dakota | $1,013,882.45 | ||
| Florida | $16,226,788.58 | Ohio | $13,224,699.82 | ||
| Georgia | $6,216,842.88 | Oklahoma | $4,935,040.37 | ||
| Hawaii | $2,889,527.93 | Oregon | $2,656,695.82 | ||
| Idaho | $1,402,889.57 | Pennsylvania | $7,673,562.51 | ||
| Illinois | $7,910,343.27 | Rhode Island | $718,408.62 | ||
| Indiana | $5,019,086.03 | South Carolina | $3,568,525.18 | ||
| Iowa | $1,903,029.03 | South Dakota | $466,120.48 | ||
| Kansas | $2,440,317.42 | Tennessee | $3,603,861.04 | ||
| Kentucky | $2,998,260.14 | Texas | $16,001,736.30 | ||
| Louisiana | $3,681,775.35 | Utah | $2,092,468.38 | ||
| Maine | $957,519.18 | Vermont | $498,679.25 | ||
| Maryland | $5,326,935.57 | Virginia | $8,678,594.53 | ||
| Massachusetts | $6,110,649.15 | Washington | $6,096,824.00 | ||
| Michigan | $6,449,646.17 | Washington, D.C. | $541,439.16 | ||
| Minnesota | $6,240,136.93 | West Virginia | $420,287.21 | ||
| Mississippi | $1,614,612.92 | Wisconsin | $2,706,400.88 | ||
| Missouri | $8,011,641.55 | Wyoming | $379,443.63 | ||
| Montana | $1,127,904.22 | ||||
Heartland also found:
- 60 percent of its signature debit sales volume qualified as regulated
- 64 percent of its PIN debit volume qualified as regulated
- On average, there is a savings of $0.19 per transaction for regulated (vs. non-regulated)
- The average signature debit non-regulated interchange fee per transaction is $0.42
- The average signature debit regulated interchange fee per transaction is $0.23
- On average, there is a savings of 68 basis points for regulated (vs. non-regulated)
- The average signature debit non-regulated effective rate is 1.48 percent
- The average signature debit regulated effective rate is 0.80 percent
For more information on the Durbin Amendment and its benefits, visit www.GetYourDurbinDollars.com.
Advertisement from IMI, the Publisher of ePayment News:
IMI is proud to announce, that after a 14 month beta, we have released our proprietary "news" "Content Marketing" platform. In short, IMI will build an enhanced "Search Engine Optimized/Marketing" (SEO/SEM) "breaking news" website around your industry's keywords for your vertical/niche.
Our platform will send our "trained" "NewsBots" to scour the web (once an hour 24/7/365) for specific keywords. Once our NewsBots find a breaking news story containing the keyword(s), they send it back to our servers which then reformat the story into a Drudge Report styled (but better) post. We not only include the Title, Photo, and a direct link to the original content provider. We include: Credit to Author, a 25 word blurb/preview, and other stories surrounding said keyword. Because our platform does this every hour, 24/7/365, it gets noticed (Big Time) by the major search engines quickly driving traffic to your news site in droves.
We can provide "targeted traffic" to any vertical, any niche, any subject. Visit Near Field Communication News or take a look at the "Breaking News Site" we built for the NBA's Miami Heat at NBANewsHeat.com Other examples include: NFLNewsBears.com & NFLNewsPackers.com. In 3 short months, we've seen traffic grow from 900 in Month One to over 10,000 by Month 3. So, in a very competitive marketplace (Profesional Sports) in the Big 4 (NFL, NBA, MLB, NHL) featuring the most popular vertical (Miami Heat) here's how we perform after only 4 months:
