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ARTICLE · 30 MAY 2021

Durbin Interchange Battles Resurface

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The Fed's final rule implementing the Durbin Amendment (Regulation II) went into effect in October 2011.

United StatesConsumer Protection
Jeremy T. Rosenblum
Jeremy T. Rosenblum
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The Fed's final rule implementing the Durbin Amendment (Regulation II) went into effect in October 2011.  Nearly ten years later, the final rule is still provoking controversy in the form of a new lawsuit and proposed amendments to the rule and its official commentary.

The Durbin Amendment (Section 1075 of Dodd-Frank) authorized the Fed to issue regulations to ensure that the amount of any interchange fee received by a large debit card issuer (one with at least $10 billion of assets, together with its affiliates) is reasonable and proportional to the cost incurred by the issuer.  It also limited the restrictions that issuers and payment card networks can place on the processing of an electronic debit card transaction.  

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