Durbin Debit Dynamics

The Federal Reserve Board has announced new debit card interchange rates, effective on October 1, 2011. The Fed’s new guidelines cap the maximum debit interchange rate at 22 cents plus 5 basis points (1/20 of 1%) of a transaction’s value. For colleges and universities whose average transaction for tuition and fees can be quite large, this represents a significant savings opportunity. The savings can be measured in tens, if not hundreds, of dollars per transaction.

Yet, while the Fed has capped debit interchange rates, merchants (like colleges and universities) don’t pay interchange fees; they pay discount fees. The discount fee includes the interchange fee as well as other fees that are not regulated by the Fed. As a merchant, you may not see a reduction in your discount fees on October 1st without taking appropriate action now.

The following is an edited, 10-minute executive summary of our Special Edition TouchNet LIVE! video-cast on Durbin Debit Reform that first aired July 14. Click below to view it.

Complimentary Durbin Debit Impact Study

I want to understand more about the effect of Durbin debit reform on my campus. Please contact me to schedule my complimentary Durbin Debit Impact Study.


Durbin Resources


Durbin Debit Dynamics

The Federal Reserve Board has announced new debit card interchange rates, effective on October 1, 2011. The Fed’s new guidelines cap the maximum debit interchange rate at 22 cents plus 5 basis points (1/20 of 1%) of a transaction’s value. For colleges and universities whose average transaction for tuition and fees can be quite large, this represents a significant savings opportunity. The savings can be measured in tens, if not hundreds, of dollars per transaction.

Yet, while the Fed has capped debit interchange rates, merchants (like colleges and universities) don’t pay interchange fees; they pay discount fees. The discount fee includes the interchange fee as well as other fees that are not regulated by the Fed. As a merchant, you may not see a reduction in your discount fees on October 1st without taking appropriate action now.

The following is an edited, 10-minute executive summary of our Special Edition TouchNet LIVE! video-cast on Durbin Debit Reform that first aired July 14. Click below to view it.

Complimentary Durbin Debit Impact Study

I want to understand more about the effect of Durbin debit reform on my campus. Please contact me to schedule my complimentary Durbin Debit Impact Study.


Durbin Resources