What is the Durbin Amendment?

The Durbin Amendment is part of the Dodd-Frank Wall Street Reform Act.  (Section 920)  It was passed by the senate in May 2010 and took affect on October 1, 2011.

It was included in the Dodd-Frank bill by Senator Richard Durbin (D-Illinois). It requires the Federal Reserve to set what they consider reasonable and proportional rates and fees for debit interchange rate.

As a result of this ruling the Federal Reserve capped fees for debit cards at 21 cents per transaction for banks with over $10 billion in assets with a charge of 5 basis points (.05%) of the transaction value to account for fraud, and $.01 cent per transaction for fraud prevention. The interchange fees will end up around $.25  which is a decrease from the previous average of $.44 pre-Durbin.  (This is based on an average sale of $38)

Learn more about how much it costs to process debit cards or contact us to find out how much your company can save by taking advantage of the Durbin Amendment.