The Fed Issues Final Debit Card Rule

On June 29, the Federal Reserve issued the final rule from the Durbin amendment which:

• Caps the price at 21 cents, plus 5 basis points ad valorem for fraud losses and "up to" one cent for fraud prevention
• Extends the implementation deadline to October 1, 2011
• Requires that an issuer enables two unaffiliated networks for electronic debit transactions

Read the complete rule here »

EPC Statement

Today, the Federal Reserve issued its final rule on the Durbin amendment. The rule fixes the price of debit interchange at 21 cents per transaction plus an ad valorem component of 5 basis points to reflect a portion of fraud losses.

The Electronic Payments Coalition issued the following statement:

"We continue to be concerned about the impact on consumers and small financial institutions from this price fixing policy," said Trish Wexler, spokeswoman for the Electronic Payments Coalition. "We hope Congress will exercise vigorous oversight of this new policy and monitor its implementation in order to assess and minimize its negative consequences to consumers, small financial institutions and the American economy."

The deadline for implementation of the final rule is October 1, 2011.

NAFCU Disappointed by Federal Reserve Debit Card Interchange Final Rule

In the News

• Fed sets 21 cent-cap on retailer debit swipe fees – The Associated Press
• Fed Raises Swipe Fee Cap to 21 Cents – American Banker
• Fed Unveils Swipe-Fee Plan – The Wall Street Journal
• Fed Voting on 21 Cent Cap on Interchange Fee – Credit Union Times
• Fed Gives In To Banks, Eases Debit Card Fee Proposal – Forbes
• Fed Raises Debit Interchange Cap to 21 Cents, But Issuers Could Get More – American Banker
• U.S. Fed weighs easing debit fee cap in final rule – Reuters
• Fed adopts less costly debit card rule – Wall Street Journal’s Market Watch
• Visa, MasterCard Climb as Fed Increases Caps on Debit-Card Fees – Bloomberg
• Fed Orders Banks to Lower Retailers' Debit Fees – The Associated Press
• Visa, MasterCard Surge On Fed’s Friendlier Cap On Swipe Fees – Forbes
• Fed Softens 'Swipe' Fees – The Wall Street Journal
• Fed Halves Debit Card Bank Fees – The New York Times
• Fed Approves New Debit Transaction Cap – Credit Union Times
• Fed gives banks a break on card swipe fees – CNN Money
• Fed hands banks a win with debit card rule – The Hill
• US Stocks Post Third Straight Gain As Greek Worry Recedes – The Wall Street Journal
• Federal Reserve Approves 21-Cent Cap for Debit Swipe Fees – Bloomberg