Debit interchange fees are collected by the card issuers and paid by the merchants for every debit card transaction. The Federal Reserve limited these fees to 0.05% of the purchase amount plus $0.22 per transaction. The new limit will reduce the average interchange fee amount from $0.44 to $0.24 per debit transaction.
However, there are significant differences in the way the new limit affects the two types of debit transactions: PIN-based and signature-based. While the interchange fees merchants pay for accepting the latter type decrease substantially, the fees for accepting the former type increase slightly.
Here are some debit interchange statistics and calculations that illustrate the effects of the Fed’s rule:

VMS-Washington – Debit Interchange Fee Limit by the Numbers (Infographic)

Why hasn’t your processor mentioned the Durbin Amendment? Learn how to lower your card acceptance cost: and ask about the Durbin Amendment that was passed on October 2011 and how it will help you lower your rates.

  1. […] on this blog until a close review of the Federal Reserve’s debit interchange rule told us that this particular type of transactions will actually become marginally more expensive to process under the new  pricing structure, which was supposed to achieve exactly the opposite result. […]

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