Would You Like Some Plastic With Your Google Wallet?

by PaymentsJournal 0

The Federal Reserve announced Friday that the interchange cap exemption for banks and credit unions with less than $10 billion in assets is working as intended under the regulations.

From The Federal Reserve:

Small depository institutions with consolidated assets of less than $10 billion, which are exempt from the interchange fee standard in Regulation II, received fee revenue of 43 cents per transaction in 2012. This amount is roughly the same as the average per-transaction fee received by exempt issuers before Regulation II took effect. In addition, most small issuers that responded to a survey about the effect of the network exclusivity provisions of the rule indicated that significant compliance costs were not incurred.

The findings are based on a survey of 102 small depository institutions. The report also looks at the costs of adding a second unaffiliated network and says that many banks said they did not need to add a new network to be in compliance.

Click here to read more from The Federal Reserve.

Featured Content