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INDUSTRY NEWS - Swipe Fee Final Ruling
Looks like the Feds got their numbers backwards! The expected interchange fee cap of 12 cents turned out to be 21 cents as the end of a long battle for retailers comes to a close. The bittersweet news outrages many, and some say the fight is far from over. The following excerpt taken from CSP details the final ruling: "Under the final rule, the maximum permissible interchange fee that an issuer may receive for an electronic debit transaction will be the sum of 21 cents per transaction and five basis points multiplied by the value of the transaction. This provision regarding debit-card swipe fees is effective on October 1, 2011. The Fed also approved an interim final rule that allows for an upward adjustment of no more than 1 cent to an issuer's debit-card swipe fee if the issuer develops and implements policies and procedures reasonably designed to achieve the fraud-prevention standards set out in the interim final rule. If an issuer meets these standards and wishes to receive the adjustment, it must certify its eligibility to receive the adjustment to the payment card networks in which it participates. Comments on the interim final rule are due by September 30, 2011. The fraud-prevention adjustment is effective on October 1, 2011, concurrent with the debit-card swipe fee limits. The Fed will re-evaluate this adjustment in light of feedback received during this comment period. | 
