New Debit Data: Sig. and PIN Cost the Same Post-Regulation

What's Next In Payments®
8:19 PM EDT May 1st, 2012

New data from the Federal Reserve Board illustrate the incredible impact new interchange regulations have had on the cost of debit network transactions.

In 2009, debit networks charged 2.4 times as much to process signature debit transactions as they did for PIN transactions. As of the fourth quarter of 2011, that difference has been erased — PIN transactions are now just two percent more costly, the Board says.

Overall, the average interchange fees charged by institutions subject to the regulations dropped from 43 cents in 2009 to 24 cents in the fourth quarter of 2011. (For institutions exempt from new regulations, the average fee did not change.)

Essentially all of the fee reductions came in the form of reduced prices on signature debit transactions. At institutions subject to the regulations, signature fees came down 57 percent, while PIN fees were lowered by just one percent on average. (At exempt institutions, signature fees fell eight percent, while PIN fees actually increased 32 percent.)

The Board also provided detailed information on the interchange fees charged by each debit payment network. Of note, MasterCard and Visa have each reduced their average signature debit fees by roughly 35 cents since the regulations took effect.

Download detailed debit fee information here, courtesy of the Federal Reserve Board.

Comments
Also by This Author
What's Hot
Merchant Innovation
Apple’s New Retail Chief To Start Next Week
Merchant Innovation
Prime Pantry Lets Amazon Customers Ship Groceries For a Flat Fee
Mobile Commerce
800 Million iTunes Accounts … And Then What?
Company Spotlight
Court Dismisses 3 Card Issuers From Decade-Old Arbitration Case
View All Articles ››
You May Also Like
Company Spotlight
Different mPOS Strokes for Different mPOS Folks
International
Digital River Offers A Sneak Peak At Mobile eCommerce Trends
Mobile Commerce
Trustwave Buys Cenzic To Beef Up App Testing Capability
Merchant Innovation
Apple’s New Retail Chief To Start Next Week
Merchant Innovation
Prime Pantry Lets Amazon Customers Ship Groceries For a Flat Fee
International
What Can $698M Do To Innovate African Entrepreneurship?
B2B Payments
How Digital and Data Will Transform Corporate Travel
View All Articles ››