A final rule establishing standards for debit card swipe fees issued by the Federal Reserve Board on Wednesday does not match the previous U.S. Senate approved rules.
The final rule, dubbed Regulation II, sets the maximum permissible swipe fee that may be received by an issuer for an electronic debit transaction at 21 cents per transactions, MultiChannelMerchant.com reports. The rule, which goes into effect on Oct. 1, also sets five basis points multiplied by the value of the transaction.
A covered issuer eligible for the fraud prevention adjustment could see an interchange fee as high as 24 nets when combined with the maximum permissible interchange fee under the interchange fee standards.
Federal Reserve Chairman Ben S. Bernanke, in a statement released by the Fed, called the ruling one of the most challenging under Dodd-Frank to date. More than 11,000 comments were received on the rule.
"I believe the final rule gives careful consideration to the statutory language, the cost data available to us, and the complexities of the debit interchange payment system," Bernanke said in the statement, according to MultiChannelMerchant.com.
The Durbin Amendment, part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, originally capped the interchange fee that a merchant's bank would pay a customer's bank at 12 cents per transaction when merchants accept debit cards, MultiChannelMerchant.com reports.