Heartland Payment Systems Passes Along $1.77M in Post-Durbin Savings
PRINCETON, N.J. -- Heartland Payment Systems passed along $1,779,568 in savings from debit interchange fee reductions from Oct. 1 to 3 to retailers across the U.S., the company announced. This marks the first real-world data about the effects of the Durbin Amendment swipe fee reform on actual business owners, said the company.
Of the savings passed along by Heartland during the first three days after swipe fee reforms took effect, restaurant owners received $671,652. The company estimates that its average single merchant will save more than $1,000 during the first year of capped swipe fees.
"These savings are just the tip of the iceberg," said Heartland President Bob Baldwin. "'Durbin Dollars' should stay where they belong -- in merchants' bank accounts -- and Heartland is helping business owners keep more of their hard-earned cash. Merchants shouldn't take this for granted. They need to be vigilant in ensuring they receive the cost savings they deserve so they don't unknowingly fall victim to processors looking to profit at their expense."
Heartland released a number of other statistical findings derived from data collected during the first three days of October at more than 250,000 Heartland-affiliated locations:
· 65 percent of Heartland's signature debit sales volume qualified as regulated;
· There is an average savings of 21 cents per transaction for regulated vs. non-regulated; and
· The average signature debit regulated effective rate is 0.80 percent.
However, Heartland also noted that retailers who process a high volume of small-ticket transactions are seeing higher fees due to Visa and MasterCard's elimination of small-ticket interchange fees. The card companies are now charging the same regulated rates of 21 cents plus one cent plus 0.05 percent of the transaction volume, resulting in higher costs on debit transactions less than $11.
Heartland Payment Systems Inc. is currently the fifth-largest payment processor in the U.S., according to the company.