Who gains and who loses from the 2011 debit card interchange fee reform?

Oz Shy

No 12-6, Public Policy Discussion Paper from Federal Reserve Bank of Boston

Abstract: In October 2011, new rules governing debit card interchange fees became effective in the United States. These rules limit the maximum permissible interchange fee that an issuer can charge merchants for a debit card transaction. This paper provides simple calculations that identify the transaction values for which merchants pay higher and lower interchange fees under the new rules. The paper then uses new data from the Boston Fed?s 2010 and 2011 Diary of Consumer Payment Choice to identify the types of merchants who are likely to pay higher and lower interchange fees under the new rules.

Keywords: Interchange fees (Banking); Debit cards (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-ban and nep-com
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.bostonfed.org/economic/ppdp/2012/ppdp1206.htm (text/html)
http://www.bostonfed.org/economic/ppdp/2012/ppdp1206.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedbpp:12-6

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Public Policy Discussion Paper from Federal Reserve Bank of Boston Contact information at EDIRC.
Bibliographic data for series maintained by Catherine Spozio ().