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NEW YORK (
BankingMyWay) -- Has the so-called "Durbin Rule," which capped the fees debit card providers could charge retailers, been a swing-and-a-miss for consumers?
Durbin Rule advocacy groups think it's been great, even if others beg to differ.
"Debit swipe fee reform has been a win for consumers and Main Street businesses, especially small businesses," says Mallory Duncan, chairman of the
Merchants Payments Coalition. "While the Federal Reserve should have done more, experience has proven that Congress got this one right. Limiting price-fixing is always better than letting it continue and where fees are lower, prices are lower."
The MPC points to retailers such as
Home Depot(HD - Get Report), which curbed prices on more than 3,000 items thanks to debit card fee reform, according to the group. And more companies, including bargain airline carrier Allegiant Air are offering cash discounts to consumers who use debit cards.
But other groups aren't so sure about debit card fee reform.
The Electric Payments Coalition says merchants may indeed be seeing lower debit card fees from banks, resulting in higher revenues. But those retailers are not passing those savings along to consumers, the EPC says.
"With a wink and a nod, giant retailers promised to lower prices for their customers if Congress passed the Durbin amendment," offers Trish Wexler, spokeswoman for the
Electronic Payments Coalition. "One year after implementation, retailers have taken home $8 billion while many of their customers pay more at the register. Let's just call a spade a spade - this was a political handout to big box retailers, who are now scrambling to make excuses for why they couldn't pass these savings along to customers."
The EPC conducted its own study on the impact of the Durbin Rule on consumer prices at the register. The group launched 36 shopping trips to 18 big-box stores and smaller retail chains across the U.S., with half the shopping excursions occurring one week before the implementation of debit card fee reform (in September 2011), and half the trips taking place last month, one year after the Durbin Rule was enacted.