As reported in the WSJ today, the Fed is proposing new debit card rates for non-exempt banks (ie over $10B in assets), further reducing the debit cap from $0.21 + 5bps.
Short Blog – Free Content
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My good friend Dave Birch wrote a piece in Forbes last week on Account to Account transfer threat to V/MA. I wanted to provide an alternate view. This will likely be a multi-part blog.. today I’m starting with the consumer and the merchant (from a US perspective).
No new information for my frequent readers, just pulling together some of the latest data (see PIX below).Continue reading
I’ve had quite a few inbound calls on Durbin and Debit in eCom so I thought it was time for a short blog. Note this is my 90% confidence view talking to 3 of the top retailers and 2 of the top processors.
Free ArticleContinue reading
Great Interview w/ CEO of Tempo on how Durbin killed margins in Debit.. and killed Tempo
Just as I wrote in March (Sepa and EU payment innovation), when governments intervene to set prices.. “innovation” can be impacted. John says Tempo is the “poster child” of government regs gone awry. On the flip side.. third party payor processes are also disconnected from market forces (payments, health care, education, pension, …). Bank of America’s response ($5 debit card fee) is the right response for america’s banks to take toward Durbin, customers that directly incur the costs for services they use can make more informed decisions (and change behavior) to optimize their own value equation.
In the US, bank debit cards will be evolving to what we see in Canada and Australia. It remains to be seen if we will see fall off in Debit transaction growth in favor of “free” credit card transactions.