The Electronic Funds Transfer Association launched its website to provide public information on the Federal Reserve’s proposed new regulations governing debit card interchange fees, mandated by the Durbin Interchange Amendment and part of The 2010 Consumer Protection Act.
Available at www.durbininterchangeamendment.org, the informational site provides news, opinions and analysis issues surrounding the changes from the law. Among these is the Fed’s effort to cap debit card interchange fees, for which the site provides access to a library of information a blog and commentary. The Electronic Funds Transfer Association holds its mission is to inform and educate the public on issues of importance to the electronic payments industry and to objectively promote the adoption of electronic payments and commerce. Some claim this debit interchange revenue for regulated card issuers will decline by 73%, from an average of $0.44 per transaction to $0.12 per transaction by July 21, according to the latest Oliver Wyman report “The US debit Market and the Durbin Amendment: Worse than the worst case scenario.”
Boston Consulting Group, for one, is projecting the new card regulations could cost U.S. card issuers up to $25 billion a year, 29% of the revenue that U.S. issuers, mostly retail banks, collect from retail card transactions. After having grown between 2000-2009 at an average annual rate of 18% to become the most commonly used non-cash method of payment, debit card transactions totaled 37.9 billion in the US in 2009 alone to account for 35% of total non-cash retail payments.
(CardFlash Library, 2010/12/23)