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Commercial Card News Brought to You by the NAPCP: Industry Regulation

Federal Reserve releases proposed debit interchange rules

Friday, December 17, 2010   (0 Comments)

On December 16, 2010, the Federal Reserve Board released a draft proposal concerning debit interchange rules. According to its press release, the Board is requesting comment on two alternative interchange fee standards that would apply to all covered issuers. If the Board adopts either of these proposed standards in the final rule, the maximum allowable interchange fee received by covered issuers for debit card transactions would be more than 70 percent lower than the 2009 average, once the new rule takes effect on July 21, 2011.

The proposal is open for comments until February 22, 2011. Read the Federal Reserve press release for details.

Passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010 included the Durbin Amendment, mandating debit interchange regulation in the U.S. by the Federal Reserve in 2011.

More Information
Members, click here for more information, such as background on the act, a copy of the Fed's proposal and an analysis of the potential impact that the proposal could have on the industry. 

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