February 16 2011|09.00 AM UTC

Samantha Eckles

Interchange Fees: What You Should Know

Category: Personal Finance, SRTags: , , , , ,


Using debit cards is certainly convenient for consumers, but not quite as practical for business owners who lose revenue to due interchange fees. As a result small businesses might be forced to pass on these fees to their customers. Here is what you should know about interchange fees.

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Interchange fees: What you should know

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{ 4 comments… read them below or add one }

The General February 17, 2011 at 8:00 am

This amendment is only going to help retailers like WalMart, and none of the savings they receive are mandated to be passed on to consumers. Already my bank has started charging for free checking to compensate. This was put into the financial reform bill after little debate, and should never have passed. It is simply a way for a special interest group to get a huge windfall at the expense of all consumers. It needs to be repealed.

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Fonda February 17, 2011 at 10:30 am

It’s true that the savings are not mandated to be passed onto consumers and that banks are still working out how to make up for their billions in losses. More articles and infographics to come from our blog team. :)

For those of you who didn’t see my response to the General’s comment on “The 12 Biggest Ripoffs in America,” public comments on the Durbin Amendment don’t close until Feb 22nd so you still have time to put in your word!

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Brad Rose February 17, 2011 at 9:18 am

Nice graphics -
Fails to mention that the issuing banks pick up the tab for fraud which makes debit card transactions a very risky proposition… Don’t believe me? Look up TJMaxx and Heartland – two massive breaches which cost issuing banks 100′s of millions of dollars which came directly out of their bottom lines.

Merchants don’t foot the fraud bill, issuing banks do. Also lookup Regulation E which holds the cardholder with almost 0 liability in a card breach situation. Merchant does not have to worry about taking a bad check or counterfeit cash – that does have an expense and it called the interchange fee.

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Fonda February 17, 2011 at 10:08 am

Thanks, Brad! You’re totally right that the issuing banks will lose billions because of this legislation — we’re going to highlight that loss, along with the meaning and impact of all this financial legislation, in the next few weeks. Just wanted to provide some background on how interchange fees work for those who aren’t as familiar with it. :)

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