Visa to Support Two Tier Debit Interchange Structure

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.

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