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Insights Into Interchange Fee Changes That May Affect Reward Checking

Monday, May 7, 2012 - 6:07 AM
Those who have reward checking accounts know that debit card interchange fees help pay for the checking account's high interest rates. The Durbin amendment last year capped these fees for large banks, those that have at least $10 billion in assets. Small banks and credit unions which offer the vast majority of reward checking accounts are not subject to this cap. Thus, the revenue they get from interchange fees should not go down and they can continue to pay the high rates on the reward checking accounts. However, small banks and credit unions may not be out the woods yet. According to this Gonzobanker article, Who Moved My Interchange!?, the Network Exclusivity rule that's also part of the Durbin amendment could cause interchange revenue to go down over time.
Ken TuminKen Tumin5,472 posts since
Nov 29, 2009
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