In short, the so-called Durbin Amendment has three components:
The Federal Reserve Board issued regulations in final form on Wednesday, June 29. These regulations cap network debit transactions charges at 21 cents per swipe, plus 0.05 percent of the transaction, with the possibility of an additional cent if issuing banks comply with fraud prevention procedures.
To assist payment card networks in determining which of the issuers are subject to the debit card interchange fee standards and which are exempt, the FRB plans to publish annual lists of institutions that are above and below the small issuer exemption asset threshold of $10 billion. Those institutions are expected to hold interchange at current levels.
Lastly, the FRB set an implementation date of October 1st. On that date, card networks must honor the 21-cent cap and allow debit cards to be processed on at least two independent networks. (The effective date for the network exclusivity prohibition for issuers is April 1, 2012).
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