What is Durbin Amendment?

/What is Durbin Amendment?

What is Durbin Amendment?

The interchange fee that is supposed to cover the risk of fraud, transactional costs, and other overhead had become a big expense for the small retailers unlike the big merchants who had the power to negotiate. The Durbin Amendment was therefore passed as part of the Dodd-Frank financial reform legislation in 2010 to require the Federal Reserve to limit fees charged to retailers for debit card processing. The rule also allowed non-exempt card issuers to charge a one-cent fraud prevention fee to merchants in addition to another 0.7 percent for fraud prevention already included in the interchange fee.

By | 2016-02-25T17:28:45-04:00 January 1st, 2016|0 Comments

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