June 10, 2011
Senate Ruling on the Durbin Amendment
Information Details:
The US Senate voted Wednesday to allow the Federal Reserve to implement the $0.12 interchange on debit cards for large banks which was proposed in the Durbin Amendment. Large issuing banks/credit unions of a designated size would have this rate applied to debit card transactions while smaller issuing banks/credit unions would continue with the current debit card interchange rates. Given the complexity of the amendment, defining the rules for “large” banks and/or credit unions will take more time and the Federal Reserve is expected to provide additional guidelines by July 21, 2011.
We anticipate the Card Brands will release information after July 21, 2011 when the Federal Reserve provides rules and guidelines for implementing the $0.12 interchange on debit transactions.