Interchange Fees Forum

From: American Banker

Advance copies of the Federal Reserve’s Final Rule on Debit Card Interchange and Routing and the Board’s Interim Final Rule (IFR) with Comment Period on adjusting allowable interchange fees for fraud prevention costs.  As the IFR states, 

The provisions allow an issuer to receive an adjustment of 1 cent to its interchange transaction fee if the issuer develops, implements, and updates policies and procedures reasonably designed to identify and prevent fraudulent electronic debit transactions; monitor the incidence of, reimbursements received for, and losses incurred from fraudulent electronic debit transactions; respond appropriately to suspicious electronic debit transactions so as to limit the fraud losses that may occur and prevent the occurrence of future fraudulent electronic debit transactions; and secure debit card and cardholder data.

From: Federal Reserve

From: Bank Systems and Technology

In anticipation of lost debit interchange fees as the result of Durbin Amendment caps, USAA Bank is eliminating its debit rewards program in order to continue its more-popular free checking and ATM fee refunds.

San Antonio-based USAA Bank will eliminate its debit card rewards program in a move it says will offset projected revenue losses from federally-capped debit interchange fees and allow the bank to maintain more popular perks such as free checking accounts and ATM fee refunds.