For years, merchant groups have been seeking government regulation to ensure that fees associated with the acceptance of debit card payments are fair and reflective of actual costs.
In 2010, a new regulation, known as the Durbin amendment was incorporated into the Financial Reform bill and signed into law. The amendment, sponsored by Illinois Senator Dick Durbin, required the Federal Reserve Bank (the Fed) to set a debit interchange rate that is lower than current published rates.
The Fed has now released final rules on (1) the fees that card issuers can charge and (2) the networks those transactions can be routed through.
At WorldPay, we have been monitoring the Durbin amendment since its introduction. Now that the Fed rules have been issued, we will turn our focus to what this policy means to you – our customers – and how together, we will lower your total cost of accepting cards.
These changes were completed October 1st, 2011. We will continue to be your advocate as we work with you to ensure that you realize a reduction in your debit acceptance fees.
Board of Goveners of the Federal Reserve Meeting Notes
