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Articles and Information on the Fedís Interchange Rule

Proposed Federal Reserve Board rules on debit card interchange would not affect ATM interchange
ATM Marketplace
In its 176-page notice of proposed rule making that was issued Dec. 16, the Federal Reserve Board, however, requested comment whether ATM interchange should be included.

A Long-Term View of the Fedís Debit Interchange Gambit
What kinds of changes will banks need to make to both the debit card account and related debit card processing fees for consumers and merchants?

Interchange Fee Study Ė 2010
In order to see how much the amendment will truly affect banksí and merchantsí bottom line, determined how much large banks would lose in total annual dollar amounts and on a per debit card basis if the Federal Reserve lowers the interchange fees by 20 percent, 35 percent, and 50 percent.

Fed Debit Survey Did Not Include Small Issuers
Credit Union Times
The Federal Reserve didn't ask credit unions or other small issuers about their costs of debit issuing before it came up with a rule limiting debit interchange income that will end up impacting them.Ē

Durbin-Inspired Survey Gives a Rare Look into Debit Cards
Digital Transactions
No matter how you feel about the Federal Reserve Boardís proposed 7-to-12-cent cap on debit card interchange and plans for breaking up exclusive debit-network affiliations, the regulatory process has produced some previously unavailable measurements of the booming debit industry.

The Scope of Debit Regulation Could Range Far Afield, Report Shows
Digital Transactions
Given the Fedís long list of requests for comment, the regulations in final form could be even more sweeping than many observers first expected. Possibly falling under their scope are ATM networks, alternative payment systems, deferred and decoupled debit cards, and closed-loop payment networks.

Visa Commits to a Two-Tier Debit Card Interchange Structure
Digital Transactions
In an apparent effort to calm its smaller debit card issuers, Visa Inc. says it will develop a two-tier interchange schedule, one with regulated rates arising from the Dodd-Frank financial-reform law and the other with unregulated rates applicable to banks and credit unions with fewer than $10 billion in assets.

Federal Reserve Debit Interchange Fee Proposal
Federal Reserve
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.

A First Analysis of the Draft Rules Mercatory Advisory Group
Mercator Advisory Group
At the end of the day, the FRB relied on the letter of the law and made a narrow interpretation of a narrow statute with the result that a majority of debit card issuers are going to be operating their programs on a revenue model that has been slashed by 75 percent or even more.

Fedís Debit Proposal:  Your Questions Answered
To say that the Fed's proposed regulations for debit card interchange have raised a lot of questions around the payments industry would be an understatement.

BofA to roll out new accounts, fees in 2011
The new accounts will be segmented into four groups called: essentials, ebanking, premium and preferred.

At Banks, New Fees Replacing Old Levies
Wall Street Journal
Banks, in an attempt to wring more revenue out of customer accounts, are conjuring up new ways to raise fees on basic products like debit cards, cash machines and checking accounts.