Despite the fee caps put in place by the Durbin Amendment, a provision of Dodd-Frank, those caps apply only to financial institutions with $10 billion or more in assets. This excludes most small banks who have less than $10 billion in assets, the Wall Street Journal reports.
Industry experts say that smaller banks’ rates have not changed from pre-Durbin times, but this trend is unlikely to continue.
“The payment card networks will still set the rates for institutions with $10 billion or less in assets for now,” Viveca Y. Ware, the senior vice president of regulatory policy with the Independent Community Bankers Association, said, according to Nooga.com. “Those rates are the same rates that were in effect before the Federal Reserve’s price-fixing regulations. We do not expect that differential to continue.”
The rule excludes small banks because lawmakers feared it would have a negative economic impact on these smaller institutions, according to the Wall Street Journal.
Under the Durbin Amendment, debit card fees are capped at 21 cents, down from 44 cents pre-Durbin. Smaller banks can still charge up to triple that amount per transaction.
Some small bank leaders still fear potential decreases in revenue. Ware says, however, that she has heard of no such trend, but it may take three to five years before the impact on small banks is able to be measured, Nooga.com reports.