US Debit Interchange Regulation: How Big of a Deal Is It?

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25 May 2010


On May 20, the US Senate passed a Financial Regulatory Reform bill. One of the amendments gives the Federal Reserve rights to limit interchange fees for debit card transactions, an unprecedented move in the US cards market.

In a new client briefing, US Debit Interchange Regulation, Celent examines the likely impact of the new debit card interchange regulation on the US cards industry.

This client briefing discusses the likelihood of interchange reduction actually happening, the likely winners and losers if it does, and what card issuers should do to prepare.

“Large merchants are the most likely to benefit from this new regulation,” says Zilvinas Bareisis, the author of the briefing. “While there is uncertainty over the extent and speed of debit interchange reduction, given this, Reg E and other recent developments, the debit card issuers should start preparing for a new world with a lot more pressure on their traditional fee structure.”