On July 29, the Fed issued a final rule, Regulation II (Debit Card Interchange Fees and Routing), establishing standards for debit card interchange fees and prohibiting network exclusivity arrangements and routing restrictions. The rule implements Section 920 of the Electronic Fund Transfer Act, which was added pursuant to Section 1075 of the Dodd-Frank Act, referred to as the Durbin Amendment. The provisions of the rule regarding interchange fees and routing restrictions will be effective on October 1. The effective date for the network exclusivity prohibition is October 1 for payment card networks, April 1, 2012 for certain issuers, and April 1, 2013 for issuers of certain health-related and other benefit cards and general-use prepaid cards.
Also on July 29, the Fed approved an interim final rule allowing for an upward adjustment of no more than 1% to an issuer's debit card interchange fee if the issuer develops and implements certain fraud prevention procedures. Comments on the interim final rule are due by September 30. The adjustment is effective on October 1, and the Fed will re-evaluate the adjustment based on comments received. Fed Release. Final Rule. Interim Final Rule.