LAKE BLUFF, Ill. – Since the Durbin Amendment rules went into effect last October, banks, thrifts and credit unions with greater than $10 billion in assets will have lost an estimated $5.6 billion in debit card interchange revenue through the end of 2012, according to Moebs $ervices.
Under the Durbin rules, institutions above $10 billion in assets had their swipe fees reduced from an average of 44 cents per transaction to about 23 to 26 cents.
Michael Moebs, economist and CEO at Moebs $ervices, pointed out the $5.6 billion represents what was lost compared with what the totals could have been without the new interchange rules. “While interchange fell only $1.4 billion from the peak of $19.9 billion in 2011, the Durbin Amendment actually cost financial institutions only $1.4 billion in booked revenue. But the potential for more debit card interchange was an opportunity loss of another $4.2 billion.”
Moreover, Moebs pointed out that regulation restricting checking account usage since the summer of 2010 has accounted for revenue losses of $12.1 billion for banks, thrifts and credit unions. “This has taken the average checking account net revenue for a year from a high in 2008 of $34 per year per account to a loss of $100 per year per account for 2012. This showcases how expensive a checking account is to operate.”