Independent Banker - February 2024 - 31

PORTFOLIO
ď…€FOCUS COMPLIANCE
Final updates to debit
card rules are here
In October 2022, the Federal Reserve Board finalized updates to the
Board's rule for debit card transactions, which went into effect July 1,
2023. Learn about the background of this ruling and its importance for
banks and their customers. By Mary Thorson Wright
D
ebit cards are big business.
Payment card networks in the
U.S. processed 92.1 billion debit and
general-use prepaid card transactions
valued at $4.3 trillion, according to
the Federal Reserve System Board of
Governors' report, 2021 Interchange
Fee Revenue, Covered Issuer Costs,
and Covered Issuer and Merchant
Fraud Losses Related to Debit Card
Transactions (amended as of October
2023). Card-not-present (CNP)
transaction volume was almost onethird
of total debit card transaction
volume in 2021, at 32.1%.
On July 21, 2010, the Dodd-Frank
Act (DFA) became law. Following
its passage, Congress amended it
with Section 1075, " Reasonable
Fees and Rules for Payment Card
Transactions, " commonly referred to
as the Durbin Amendment.
The Durbin Amendment included
two parts that required the Federal
Reserve System Board of Governors to:
1. Specify that debit card issuers
should enable at least two payment
card networks to process all debit
card transactions, including
CNP transactions, such as
online payments
2. Establish standards for assessing
whether the amount of any
interchange fee received by a
debit card issuer is reasonable and
proportional to the cost incurred by
the issuer with respect to the debit
card transaction
New rule in effect as of July 2023
In October 2022, the board finalized
updates to its rule for debit card
transactions for the first part of the
Durbin Amendment. It went into
effect on July 1, 2023.
The final rule underscores that debit
card issuers should enable at least
two unaffiliated networks to process
debit card transactions. Comments
to the proposal suggested that many
independentbanker.org // 31
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Independent Banker - February 2024

Table of Contents for the Digital Edition of Independent Banker - February 2024

Contents
Independent Banker - February 2024 - Cover1
Independent Banker - February 2024 - Cover2
Independent Banker - February 2024 - Contents
Independent Banker - February 2024 - 2
Independent Banker - February 2024 - 3
Independent Banker - February 2024 - 4
Independent Banker - February 2024 - 5
Independent Banker - February 2024 - 6
Independent Banker - February 2024 - 7
Independent Banker - February 2024 - 8
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Independent Banker - February 2024 - 30
Independent Banker - February 2024 - 31
Independent Banker - February 2024 - 32
Independent Banker - February 2024 - 33
Independent Banker - February 2024 - 34
Independent Banker - February 2024 - 35
Independent Banker - February 2024 - 36
Independent Banker - February 2024 - 37
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Independent Banker - February 2024 - 80
Independent Banker - February 2024 - Cover3
Independent Banker - February 2024 - Cover4
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