June 30, 2011
PayPal issued a short statement regarding Wednesday’s Federal Reserve meeting on the final proposal for debit card regulation, according to the site auctionBYTES.
“The effect on the online retail community will be somewhat mitigated by the Fed’s decision to exclude alternative payment providers, such as PayPal, from the new rules,” reports auctionBYTES. “’For this reason, we do not believe PayPal’s broader payment service will be subject to the cap on debit card interchange fees,’ PayPal said in a statement.”
The Final Rule in its latest proposal set a cap of 21 cents on transactions that fall within its scope (plus 5 basis points on the transaction value) and requires issuers to place two unaffiliated marks, on every debit card. Tom Brown, Katherine Robison and Samuel Zun of O’Melveny & Myers LLP break down the rules: Read article
ABA Statement on Fed Interchange Rule
NRF Expresses Disappointment in Federal Reserve for Watering Down Swipe Fee Reform
Merchants Payments Coalition: Federal Reserve Bends to Bank Pressure
Bloomberg: “How Wal-Mart Trumped JPMorgan on Debit Cards”
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