New Bank Interchange System Announced
A new policy that will install a two-tiered debit interchange system to lessen the gap between small banks and credit unions and the larger debit card issuers.
The system will not force small banks and credit unions, which have assets of less than $10 billion, to pay the debit card swiping fees. This will save smaller entities a large amount of money, and will help them compete in a larger market.
Currently, companies that oversee 80 percent of debit transactions are committed to this plan. Visa, CU-24, Pulse, Star and Shazam are the companies that have agreed with the legislation, initiated by Senator Dick Durbin, D- of Illinois.
Many incorrect ideas have been insinuated regarding interchange reform, including how it would damage small banks and credit unions, Durbin said, according to Covenience Store Petroleum Daily News. "Now that yet another swipe fee reform myth has been shattered, we must focus on implementing this new legislation quickly, so that consumers and small businesses alike can benefit from its much-needed protections."
This may be important to consumers specifically, because it could mean changes in payment structures for those who use debit cards.