Dodd-Frank Act

There is quite a bit of speculation on just how low the Federal Reserve is going to adjust debit interchange fees. Some analysts are estimating the reduction in debit usage fees could cost banks around 5 million dollars in lost revenue. Lost revenue that is most likely going to be made up by charging consumers for banking services. Services that were once free.

According to Paymentsource.com, the Fed will announce debit interchange rates that are 25% to 75% lower than current levels. They must draft regulations within 9 months of the bill being signed into law. The new debit interchange rates would become effective 12 months after the bill is signed. Visa and MasterCard network transaction fees will not be directly regulated by the Fed.