Archives / 2011 / September
  • More signs of unintended consequences from government debit Interchange intervention

    Interchange fees have evolved over the years to be priced at the transaction level depending on factors such as a merchant's industry category, the card product accepted (credit, debit, rewards, commercial, prepaid, etc.) and the method of acceptance (think card present or card not present). In addition to other nuances, special rates where also introduced for small ticket transactions less than $15.

    However as a result of new government regulations impacting debit cards starting October 1, merchants accepting small ticket debit transactions are likely to experience higher rates.

    MasterCard, Visa and Discover have all opted to support a two tiered debit Interchange pricing schedule for Fed regulated and exempt debit transactions. Yet in implementing the regulations, as discussed in … more

  • now quoting new Fed regulated debit Interchange rates

    Get an instant Merchant Rate quote based on the new October 2011 Interchange schedules and get a first look at the Fed's new regulated debit rates as mandated by legislation often referred to as the Durbin Amendment. Note that the new regulated debit rates do not apply to all debit transactions. The Fed exempted banks with assets under $10 billion from its mandated debit Interchange fee cap. Visa, MasterCard and Discover are all quoting a two-tiered debit Interchange fee to help protect small issuers. However, there are approximately 100 banks with more than $10 billion in assets and their cardholders account for approximately 75% of all debit transactions. Your card processor is not required to pass the reduced rates for these debit transactions (and the associated savings) on to your … more

by Ty Hardison

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