Market Report, "Debit Cards in the US", Published
The capping of interchange rates that issuers may charge merchants to 21 cents per transaction from the previous average of 44 cents was a significant development in the payment market. The interchange cap, which only applies to banks with assets over US$10 billion, is expected to transfer billions of dollars in annual revenue from the banks to retailers. The cap removes a substantial incentive for the largest banks to issue debit cards, and going forward these institutions will favour more...
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