Debit Card Interchange Fee Regulation: Some Assessments and Considerations

FRB Economic Quarterly, Vol. 98, No. 3, Third Quarter 2012, pp. 159-183

24 Pages Posted: 17 May 2013  

Zhu Wang

Federal Reserve Banks - Federal Reserve Bank of Richmond

Abstract

The debit card interchange fee regulation introduced by the Durbin Amendment to the Dodd-Frank Act went into effect in October 2011. The regulation limits the maximum permissible interchange fee that a covered issuer can collect from merchants for a debit card transaction. In this article, we review the regulation's first-year impact on different players in the debit card market. We also discuss how the regulation may affect payments efficiency.

Suggested Citation

Wang, Zhu, Debit Card Interchange Fee Regulation: Some Assessments and Considerations. FRB Economic Quarterly, Vol. 98, No. 3, Third Quarter 2012, pp. 159-183. Available at SSRN: https://ssrn.com/abstract=2266079

Zhu Wang (Contact Author)

Federal Reserve Banks - Federal Reserve Bank of Richmond ( email )

P.O. Box 27622
Richmond, VA 23261
United States

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