Visa and Mastercard agree to lower average credit card interchange fee below 1%

Re:Visa and Mastercard agree to lower average credit card in... by arcticbull on Friday May 19, 2023 @03:07AM (#35998704)

Before Durbin there used to be a lot of banks that offered points-earning debit cards. After Durbin, for many years SunTrust had a debit card that earned Delta miles. I think that's since moved to Truist. [1]

I guess it depends on what you mean by 'abuse.'

Is Truist abusing non-Durbin status by giving out points for PIN debit transactions? Or are all the other non-Durbin banks who give back nothing abusing the exemption by keeping the interchange?

[1] https://www.truist.com/checking/debit-cards

[ Parent | on HN ]

Re:Visa and Mastercard agree to lower average credit card in... by hiatus on Friday May 19, 2023 @07:50AM (#36000639)

Being non-Durbin enables Truist to compete with bigger banks by being able to offer things like cash back on debit. That seems less like abuse and more things working as intended.

[ Parent | on HN ]

Re:Visa and Mastercard agree to lower average credit card in... by Scoundreller on Friday May 19, 2023 @10:16AM (#36002264)

From what I can tell, the exempt interchange fees were unregulated. So don’t know if they went out of control or not.

But even Durbin wasn’t perfect: before many cards would charge more of a percentage model, but after Durbin, raised them per swipe fee to the max. Which can be unfortunate for small purchases.

[ Parent | on HN ]