How to tell if a Bank's Debit Card Interchange Fees will be Capped under the Durbin Amendment to Dodd-Frank
The Durbin Amendment to the Dodd-Frank Financial Reform Bill requires the Federal Reserve to regulate and cap Debit Card Interchange Fees collected by issuing banks with over $10 billion in assets.
On June 29th 2011, the Federal Reserve released its proposed final rule to cap debit card interchange rates at $0.21 + 0.05% plus an additional $0.01 for costs related to fraud prevention, if the issuing bank meets certain standards and practices for preventing fraud. This cap will apply to both Signature and PIN debit transactions, and to both card present and card not present debit transactions. The proposed rule would go into effect in October 2011.
On July 12th 2011, the Federal Reserve published two lists. The Exempt List shows Issuing Banks with less than $10 billion in assets. Debit cards from banks on this list have uncapped debit card interchange fees. The Non Exempt List shows banks with more than $10 billion in assets. The debit cards from banks on this list have capped interchange fees.
Burlington Bank Card strives to provide our merchants with secure and reliable interchange plus merchant payment processing, transparent pricing, and one-on-one personal service.
Burlington Bank Card always passes on true Interchange costs to all of our merchants: Pricing & Rates
Please call 1-800-758-1002 or contact us to learn more about Interchange Plus Credit Card Processing, and how Burlington Bank Card can help your business get the full cost savings provided by the Durbin Amendment and Federal Reserve caps on Debit Card Interchange Fees.