Durbin Down Under
As financial institutions grapple with the impending regulation of debit card interchange fees it is worth taking a look at what happened in Australia.
Durbin, Debit, and Financial Reform
The U.S. Congress is in the final stretches of passing financial reform legislation which has been under intense discussion and debate since the implosion of the financial system in September 2008.
The Economics of Payment Card Interchange Fees and the Limits of Regulation
Fresh off of the most substantial national liquidity crisis of the last generation and the enactment of sweeping credit card regulation in the form of the Credit CARD Act
The Effect of Regulatory Intervention in Two-Sided Markets: An Assessment of Interchange-Fee Capping in Australia
The Reserve Bank of Australia reduced interchange fees by almost half thereby eliminating a significant source of revenue to issuers of credit cards.
New Interchange Reform, Minimum Purchase and Discounting Options
On July 21, 2010 President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act into law, ushering in sweeping reforms of the banking industry including reforms of interchange fees.
Consumer Protection Act — Sec. 1075. Reasonable Fees and Rules for Payment Card Transactions
REGULATORY AUTHORITY OVER INTERCHANGE TRANSACTION FEES.—The Board may prescribe regulations, pursuant to section 553 of title 5