Excerpt from the Independent Community Bankers of America press release
People who use debit cards issued by community banks will face higher costs and increased restrictions if a proposed Federal Reserve regulation goes into effect, according to a new survey of members of the Independent Community Bankers of America (ICBA).
This doesn't look good for the future of reward checking. There are hopes that small institutions (which offer the vast majority of reward checking) won't be hurt by this, but according to the press release, it will impact them:
the so called "carve out" for institutions with less than $10 billion in assets included in the Durbin amendment simply won't work primarily because merchants will now control the entire transaction process, driving customers to cheaper price-controlled cards instead of cards issued by their local community bank.