The Board of Governors of the U.S. Federal Reserve have issued the final rule governing debit card interchange fees, the fraud prevention adjustment, and routing and exclusivity restrictions. To summarize the final rule:
- Debit interchange cap - $0.21 plus 5 bps (for both signature debit and PIN debit)
- Fraud prevention adjustment - $0.01 (interim rule)
- Routing restrictions and network exclusivity - Option A (two unaffiliated debit network)
- Relevant dates
- Sep 30, 2011 - Public comments on interim rule are due
- Oct 01, 2011 - Effective date for debit interchange cap, fraud prevention adjustment
- Apr 01, 2012 - Effective date for network non-exclusivity for most debit card issuers
- Apr 01, 2013 - Effective date for network non-exclusivity for non-reloadable (i.e. gift cards) and health benefit prepaid card issuers
- Card Present vs Card Not Present - No distinction
The full staff memorandum to the Board of Governors, the interim rule on the fraud prevention adjustment, and the final rule (Regulation II, Debit Card Interchange Fees and Routing) are available online.
For a complete analysis of the final rule, join us for a special 90 minute Glenbrook webinar that explores the impact of various participants in the payments ecosystem. Wednesday, July 6th, 10:30AM - 12:00 PST, $149. Register Now.