Two weeks ago, Visa announced that it will support a two-tier debit interchange structure – the current debit interchange rates for issuers with assets less than $10 billion and the new capped debit rates being developed by the Federal Reserve for larger issuers. Read more about this here.
“MasterCard is continuing to evaluate the viability of a two-tier interchange structure…” read a statement from MasterCard. It is likely that MasterCard will follow Visa or otherwise, risk being less competitive to smaller financial institutions.
Lastly, if you didn’t get a chance to see the Federal Reserve hearing proposing new rules in regulating debit interchange fees and routing, check here to see an archive on C-Span. It is very interesting to hear the Fed’s perspective on our industry, particularly in the Q&A session.
