• NRA
    NRA We Serve America's Restaurants Representing nearly 500,000 restaurant businesses, we advocate for restaurant and foodservice industry interests and provide tools and systems that help members of all sizes achieve success.
  • NRAEF
    NRAEF Building & Retaining Talent The NRAEF is focused on developing a stronger workforce and building the next generation of industry leaders through education, scholarships and community engagement.
  • NRA Show
    NRA Show May 19-22, 2018 As the international foodservice marketplace, the NRA Show provides unparalleled opportunities for buyers and sellers to come together, conduct business and learn from each other.
  • ServSafe
    ServSafe Minimize Risk. Maximize Protection. For over 40 years, ServSafe® training programs have delivered the knowledge, leadership and protection that have earned the trust and confidence of business leaders everywhere.

National Restaurant Association - How the Durbin Amendment will save card-processing costs

Skip to navigation Skip to content

News & Research

Share:
Email Print
News RSS

How the Durbin Amendment will save card-processing costs

Restaurateurs should expect substantial savings in processing fees when the Durbin Amendment takes effect July 21, the head of one of the largest card processors in the country told attendees at the National Restaurant Association Restaurant, Hotel-Motel Show.

The Durbin Amendment is part of the Dodd–Frank Wall Street Reform and Consumer Protection Act that will allow the Federal Reserve to limit interchange rates on debit card transactions — the fee a bank charges to process card transactions — to 12 cents.

According to Bob Carr, chief executive of Heartland Payment Systems in Princeton, N.J., Durbin will “save our customers a total of $450 million dollars in its first year. That’s a lot of money. We will collect $450 million less because of it, but we love that the money is going straight to the merchant. I wish everyone in our business felt that way.”

He added that Durbin will save the average Heartland restaurant customer $1,992 a year. However, a lot of legislative activity is still swirling around the amendment, which could delay its start.

Carr noted that when the amendment goes into effect, restaurateurs should be prepared to take full advantage of it. To do that, he emphasized that operators should:

• Ask for written confirmation from your processor that your Durbin rate decrease will be passed on 100 percent to your checking account beginning on the day it is implemented.

• Check your contract to find out the terms and conditions of how you can terminate your agreement with your processor if it isn't willing to give you written confirmation regarding the decrease.

Conserve RSS Healthcare RSS Conserve RSS

▲ Back to Top

We're glad you're here!®

® 2012-2017 National Restaurant Association. All rights reserved.

2055 L St. NW, Suite 700, Washington, DC 20036
(202) 331-5900 | (800) 424-5156