Above is some background information on this act. While the Dodd-Frank Act was intended to help merchants be able to reduce fees of processing debit card transactions, it may be creating a negative affect for merchants whose primary transactions are under $10. In the article below, an owner of a coffee shop is extremely disappointed with this act.
The problem that arises when the government creates a regulation is that the regulation always seems to be incomplete, leaving some without protection. While the government thought that putting a 21 cent cap on these fees would help merchants who need it, thereby forcing the banks to make up that revenue elsewhere, it actually proved the opposite for merchants whose transactions are primarily under $10. Banks that attempted to charge fees for debit card usage to consumers quickly dropped the fees after the outrage from customers. So instead what do they do? They eliminate the discounts that they once gave small dollar transactions. For merchants who sell more expensive items such as an average of $100 product, they get charged 21 cents; however, coffee shops and delis are getting the worst of it because for a $3 coffee and bagel, they are still paying these 21 cents.