In the past few years gas prices have had a hefty effect on consumers pocketbooks. When the Durbin Amendment was passed on, Oct 1, 2011 consumers thought they would catch a break in the stiff gas prices by having their transaction fees reduced when buying gas.
However, as of October of 2011 consumers are still paying around the same amount at the pump today. Where is everything going wrong? Also, why isn’t the Durbin Amendment helping the consumers? The reason behind this is the middleman in between the producer and the consumer. That’s right the retailer is keeping the money coming from the Durbin amendment.
Why haven’t the retailers passed on to the consumers the financial benefits from the Durbin amendment? Because of Durbin the retailers are getting an extra four cents on every gallon savings in card transaction fees.
Nationally gas retailers are getting a $1 billion a year windfall because of the Durbin amendment. Money for there own benefit instead of passing it on to the people in lower prices as they told Congress they would in order to secure passage of the amendment.