US Cap on Debit Fees Impacts Both Bank Card and NFC Markets

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4Q 2011 | IN-1010203


Durbin Amendment Increasing Costs for US Merchants


In early December, the Wall Street Journal reported that the “debit-fee cap has a nasty side effect” that is causing a number of small businesses in the United States to reconsider their approach and acceptance of debit cards. This is because smaller merchants are being hardest hit by the loss of a discretionary discount that MasterCard and Visa allowed on low-value transactions. The two companies have pulled this discount in response to a cap on the fees they can charge on higher-value transactions.

Shipments of Contactless Cards in US Falling in 2011


For low-value card payments, the card networks charge comparatively higher-fees, so mer...

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