Star Raises PIN-Debit Interchange Fees
The American Banker reported yesterday (subscription required) that Concord EFS' Star network is raising interchange fees on PIN debit card transactions effective February 1st.
With the recent settlement of the anti-trust lawsuit against First Data and Concord EFS, Star will be competing in the marketplace with rival network NYCE, among others, for bank issuance of PIN debit cards. Increased interchange is one mechanism to motivate bank issuers to either stay with or join Star. Of course, it's the card accepting merchants that pay the price as the interchange increases come out of their bottom line.
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