American Banker | Friday, June 25, 2010
With Congress expected to approve the regulatory reform bill next week, including the much-debated interchange amendment, banks are bracing for a significant hit to their debit card revenue. While the ink is barely dry on what is now known as the Dodd-Frank Act and it's far from clear exactly how the Federal Reserve will adjust debit interchange fees, but bankers and analysts agree that the fees are all but certain to come down — and probably by a lot. By some estimates, the interchange regulations cut vaporize more than $5 billion of banks' annual debit fee revenue just for banks that issue Visa Inc. and MasterCard Inc. cards. "Revenue is going to drop like a brick," said Gary Jewell, an executive vice president of Carrollton Bank.
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