Welcome to the News View for "Debit Cards".
Here, on these archive pages, you'll find all of the articles on Payments News for Debit Cards listed in date sequence beginning with the most recent article at the top of the page.
Click here for a complete listing of what's available in the Payments News Archive - organized by both posting date and subject category.
Over on Payments Views, Glenbrook's Scott Loftesness takes a look back at payments in 2011.
At Glenbrook, we thrive on thinking about how payments are evolving and how these changes will affect us in the years ahead. In this look back at the important payments themes of 2011, we share a summary of some of our best thinking over the course of 2011 from our PaymentsViews.com web site.
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Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated.
In response to customer feedback and the changing competitive marketplace, Bank of America has announced that it no longer intends to implement a debit usage fee.
“We have listened to our customers very closely over the last few weeks and recognize their concern with our proposed debit usage fee,” said David Darnell, co-chief operating officer. “Our customers’ voices are most important to us. As a result, we are not currently charging the fee and will not be moving forward with any additional plans to do so.”
In related news, Wells Fargo also announced that they were canceling their $3 per month debit card usage fee pilot.
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Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated.
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Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated.
Heartland Payment Systems has released the state-specific data about the legislation’s actual effects on business owners in various states across the country.
“Merchants are wondering how the percentage of regulated versus non-regulated transactions in their states would impact their savings, and this data provides insight into exactly that,” said Bob Baldwin, Heartland’s president. “By providing business owners a frame of reference for how much money, on average, their peers across their state are saving from Durbin, they have an idea of what their own savings may be."
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Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated.
Fiserv has announced that its ACCEL/Exchange debit payments network "brought nearly 250 financial institutions to the global PIN debit ATM and debit network in the first half of 2011, bringing total membership up to more than 2,900 financial institutions. Concurrent with the addition of these new members, Fiserv has seen transaction volume in the network increase as well. Transactions at both ATMs and point of sale (POS) are up 31 percent for the first six months of 2011."
Co-op Services Credit Union has announced that it is challenging people to shred their bank debit cards in protest of new debit card usage fees.
Co-op Services' "Shred My Card" program gives people the opportunity to take their bank debit card to any Co-op Services location, open a new free checking account with direct deposit, e-statements and a debit card then shred their old bank debit card, to receive $105.
Details of the credit union's challenge are available at www.ShredMyCard.com.
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Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated.
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Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated.
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Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated.
Over on our sister blog, Payments Views, Glenbrook's Bryan Derman shares his thoughts on the new debit card fees. While sympathetic to the economic plight of the large retail banks, he also questions the message big banks are sending to their customers.
…the idea of buying a checking account where the debit card is a feature requiring a supplemental fee must seem like buying a new car from General Motors that considers a steering wheel or tires to be a separately priced option.
Visa and MasterCard have increased small ticket debit interchange up to the legal cap prescribed by Regulation II. To understand the impact of this increase on small ticket sellers, see this story in Digital Transactions magazine on the likely reaction from vending operators. For reference, Visa's US Interchange Rate Schedule is located here; MasterCard's Schedule is here.
Heartland Payment Systems announced that it will pass the debit swipe fee cost savings from the Durbin Amendment directly to its merchants.
“Business owners work hard for every penny they earn, and Heartland is helping them keep more of their money,” said Bob Baldwin, president at Heartland. “It’s easy for a processor to say it will pass the savings along to its merchants, but the reality is, many won’t. As a result, unfortunately many merchants will miss out on some or all of Durbin’s financial benefits, ultimately costing them thousands of dollars.”
The National Retail Federation (NRF) has issued a statement on the Regulation II debit card rate cap going into effect this past weekend:
“Retailers across the nation are developing a wide range of innovative ways to pass these savings along to their customers with lower prices and better value,” NRF Senior Vice President and General Counsel Mallory Duncan said. “Change won’t come overnight, but consumers will definitely benefit. Reducing these fees will put billions of dollars back into the Main Street economy, helping American families stretch their paychecks and ultimately preserving and creating local jobs to keep America on the road to recovery.”
The debit card interchange cap of Regulation II went into effect on October 1st, 2011. The New York Times has a nice summary of how the regulated banks are reacting, particularly with regards to implementing monthly debit card fees:
The reaction to these new banking fees is quite diverse:
Joanna Stavins of the Boston Fed has published a Public Policy Brief entitled "Potential Effects of an Increase in Debit Card Fees".
Recently announced changes to debit card interchange fees could lead to an increase in the cost of debit cards to consumers. This brief analyzes the potential effects of an increase in debit card fees or in bank account fees by using the results of the 2008 and 2009 Survey of Consumer Payment Choice (SCPC).
Internet Retailer is reporting the results from its first online merchant survey on potential debit card steering practices. Bottom line: one in six online merchants plan to take steps to encourage debit card usage.
39.6% of respondents said they didn’t know debit card fees were going down; a further 43.2% said they have no plans to encourage more debit card spending on their retail sites, while 17.1% will take steps to lower their costs by encouraging debit card payments.
Glenbrook's Russ Jones blogged about POS Steering in the Age of Durbin earlier this year.
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Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated.
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Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated.
The Federal Reserve Board has published lists of institutions that are subject to, and exempt from, the debit card interchange fee standards in Regulation II.
These lists, available at the Fed website, are intended to help payment card networks and others determine which issuers qualify for the statutory exemption from interchange fee standards. The statute exempts any debit card issuer that, together with its affiliates, has assets of less than $10 billion.
There are currently 14,842 institutions that are exempt and 572 that are subject to debit interchange fee standards. The Board plans to update the lists annually.
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Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated.
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:
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.
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Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated.
Register now for Glenbrook's Take - Final Durbin Rules, a special 90 minute webinar where Glenbrook explores the impact of the Federal Reserve Durbin rules. With the final rules being released June 29th, we're bringing together a number of Glenbrook subject matter experts to provide a full 360 degree view of the new 'post-Durbin' landscape:
Wednesday, July 6th, 10:30AM - 12:00 PST, $149. Register Now.
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Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated.
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Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated.
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Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated.
Backers of the Test-Corker Bill to delay implementation of the Durbin Amendment have failed by a vote of 54-45 to reach the 60 votes needed. The vote means that the existing amendment passed as part of last year's Wall Street reform law will take effect July 21, 2011. Media coverage:
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