The Federal Reserve released its annual report assessing how its debit interchange standards are affecting small issuers. The standards, which implement the so-called Durbin Amendment to the Dodd-Frank Act, were adopted in 2011 as Regulation II. Banks with less than $10 billion in assets are exempt from rule's price caps but not from its prohibition on network exclusivity.
The report found that in 2012, small banks received an average of 43 cents per transaction, about the same as before the interchange fee rules took effect. The average per-transaction fee was 1.3 times that received by non-exempt issuers.
The report also found that about 16 percent of small debit card issuers incurred compliance costs under the network exclusivity provisions, which require issuers to have at least two unaffiliated networks on every debit card. Compliance costs totaled 72 cents per card initially, with an additional $1.19 per card required per year in ongoing compliance.
Read the report.