Payments Dive

JUNE 20, 2024

Senators this week introduced their version of a House bill aimed at derailing the Federal Reserve’s plan to lower the cap on fees that card issuers can charge merchants on debit card transactions.

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Debit Card Federal Reserve Fed Card Issuer 88

Payments Dive

JULY 18, 2023

The CEO of the private label card issuer expects a final rule on the CFPB’s proposed credit card late fee cap later this year, and litigation could follow, he said.

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Rules Card Issuer CFPB Caps 78

Electronic Payments Coalition

FEBRUARY 28, 2024

WASHINGTON, DC — It’s been nearly 15 years since the Durbin Amendment imposed price caps and routing mandates on debit cards, financially burdening small businesses, while corporate mega-stores, like Walmart and Target, have accumulated substantial revenue gains.

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Credit Cards Card Issuer Debit Card Small Business 105

PYMNTS

MAY 13, 2019

The proposed credit card interest rate cap legislation , courtesy of Democratic presidential hopeful Senator Bernie Sanders and Rep. Alexandria Ocasio-Cortez is in serious need of an almost half-century-old refresher course in the unintended consequences of price caps on the American consumer. Here’s why.

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Payments Source

APRIL 24, 2016

It didn't take long for debit card issuers affected by the Durbin amendment fee caps to cut back or eliminate rewards programs to recoup costs. Issuers now engaged in the increasingly competitive credit card rewards and loyalty environment may soon have to face that same decision.

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Credit Cards Card Issuer Debit Card Issuers 65

Finextra

MARCH 5, 2024

The Consumer Financial Protection Bureau (CFPB) finalized a rule today to cut excessive credit card late fees by closing a loophole exploited by large card issuers.

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Consumer Financial Protection Bureau (CFPB) Credit Cards CFPB Caps 45

PYMNTS

SEPTEMBER 17, 2020

The way the rewards programs work is that airlines sell miles to banks, and the banks use them as credit card rewards to attract the wealthier customers they want as cardholders. where there are no caps on credit card transaction fees, FT reported. The loyalty programs are especially golden in the U.S.,

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Stax

AUGUST 1, 2024

Visa’s surcharge rules around disclosure, compliance, options (brand-level/product-level), notifying acquirers, surcharge cap, etc. It would like to increase interchange fees, but also control how much merchant surcharge can be added to customers’ bills so they don’t get discouraged from using credit cards.

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Rules Credit Cards Caps Processors 88

Stax

SEPTEMBER 26, 2024

That said, you can’t just decide and impose credit card surcharges overnight. It requires stringent adherence to regulatory guidelines and card network rules, from surcharge caps to disclosure requirements. Credit card networks like Mastercard and Visa set a universal limit of 4% on these fees.

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Credit Cards Caps Best Practices Laws 88

Stax

DECEMBER 20, 2023

Set rate processing Subscription rate processing TL;DR Interchange fees are not collected by your payment processor or bank; they go directly to the card-issuing banks. Interchange fees vary significantly depending on the card issuer, the issuing bank, type of transaction and/or merchant type. World High Value (USD) 2.00% + $0.10

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Credit Cards Debit Card Processors Non-Bank 167

Stax

DECEMBER 20, 2023

Let’s start with the elephant in the room: are debit card surcharges legal? The short answer is no, it’s not legal to surcharge debit card transactions. Major card issuers, including Visa and Mastercard , expressly forbid surcharging debit card transactions. How much do debit card transactions cost?

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Debit Card Legal Credit Cards Processing Costs 88

PYMNTS

JULY 6, 2020

This month’s Deep Dive examines how the pandemic has spurred greater touchless payment method adoption and how card issuers, networks and other players in the space are responding. . Safety Concerns Encourage Contactless Card Use . One major credit card company launched a new “buy button” capability this year, for example.

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Transactions Card Issuer Push-to-Card Contactless Payments 52

Stax

DECEMBER 6, 2023

This additional fee is intended to cover the costs associated with processing credit card payments. Businesses that choose to add surcharges can either charge a fixed flat fee or a percentage of the transaction amount with a cap on the total. One exception is in Colorado where the cap is 2% or the cost of the merchant processing fee.

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Consumer Credit Cards Alternative Payment Methods Debit Card 88

PYMNTS

SEPTEMBER 8, 2017

But, while debit cards are on the rise, the study shows credit cards’ share fell by two percentage points to 20 percent in 2016 and is set to continue to decline in certain areas. In the EU, interchange fee caps have limited the profitability for card issuers, while banks in the U.K.

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Debit Card Global Payments Credit Cards Issuers 59

Stax

JANUARY 24, 2024

TL;DR A credit card surcharge is an additional fee tacked on to the purchase amount when a customer pays via a credit card. It is added at the point of sale and depends on the total amount of a transaction and the cap set by credit card companies. Hence you must follow the caps strictly.

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Credit Cards Laws Caps Legal 88

Stax

JANUARY 24, 2024

TL;DR A credit card surcharge is an additional fee tacked on to the purchase amount when a customer pays via a credit card. It is added at the point of sale and depends on the total amount of a transaction and the cap set by credit card companies. Hence you must follow the caps strictly.

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Credit Cards Laws Caps Legal 88

The Payments Association

OCTOBER 4, 2024

Traditional card issuers and networks must adapt or risk obsolescence. Technological disruption and innovation The rapid pace of technological change is both a challenge and an opportunity for the card payment industry. Additionally, regulatory caps on interchange fees in some regions (e.g.,

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Online and Mobile Banking Cross-Border Payments Cross-Border Alternative Payment Methods 88

FICO

MARCH 19, 2018

The potentially worrying delinquency results come at a time when the FCA aims to try and address the issue of persistent credit card debt, putting requirements in place for banks later in 2018. Others have suggested capping the level of interest that a bankcard issuer can charge.

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Credit Cards Issuers Card Issuer Adjustments 49

PYMNTS

APRIL 5, 2016

The European Commission recently introduced interchange fee caps for payment cards used in the EU, but those regulations don’t apply to commercial cards, instead allowing individual Member States to decide whether commercial cards should also see the swipe fee limit.

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Clearly Payments

FEBRUARY 12, 2024

Interventions such as countries putting caps on interchange fees and mandates for transparent pricing aim to foster competition and protect consumer interests. Interchange fees, a significant source of revenue for Visa and Mastercard, are subject to regulatory oversight.

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Visa Payments Payment Networks Online and Mobile Banking 105

Electronic Payments Coalition

MARCH 26, 2024

merchants, more than 90 percent of which are small businesses, lowering credit interchange rates and capping those rates into 2030. The agreement will cap the reduced credit interchange rates for five years, providing an unprecedented level of cost certainty long sought by merchants. merchants, comprised largely of small businesses.

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FICO

NOVEMBER 16, 2021

It was the first month with no furlough support and also marked the end of extra benefit payments, plus the increase in the energy cap level and continuing rises in fuel and food prices are all likely to have an impact. These card performance figures are part of the data shared with subscribers of the FICO® Benchmark Reporting Service.

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Credit Cards Issuers Card Issuer Caps 52

PYMNTS

JULY 6, 2016

From the vantage point of the card companies, as MasterCard has noted online, interchange fees, in effect, are a cost of doing business and factor into innovation as “ the card issuer, the retailer and the acquirer (what the industry calls the retailer’s or merchant’s bank) all pay a small portion of the cost.

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Visa Cross-Border Caps Online and Mobile Banking 40

PYMNTS

JUNE 26, 2017

PayPal’s does not wish to be seen as a payments ecosystem adversary – but instead as an ecosystem enabler in digital banking and money transfers, leveraging the reach of PayPal online and via mobile pay for the benefit of card issuers and the consumers they serve. But it seems such a bidding war is not to be. Stay cool.

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Venmo PayPal Online and Mobile Banking Visa 46

EBizCharge

JULY 10, 2024

There is no option to carry over a balance from month to month with a charge card. While charge cards don’t have a preset spending limit, this doesn’t mean unlimited spending. The charge card issuer will approve purchases based on various factors, such as the cardholder’s payment history, spending habits, and financial resources.

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Credit Cards Credit Limit Card Issuer Issuers 52

PYMNTS

APRIL 11, 2016

Previous research on this same topic suggested a move towards single-use and virtual cards as a key factor behind changing commercial card trends across the continent.

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Commercial Card Push-to-Card Cross-Border Payments Research 40

Stax

JANUARY 31, 2024

Interchange rates are the fees charged by credit card networks (like Visa, Mastercard, American Express, and Discover) to facilitate card transactions between merchants and banks. The card issuers periodically update their interchange rates using the following factors.

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Credit Cards Push-to-Card Processors Debit Card 88

Cardfellow

SEPTEMBER 30, 2023

You may remember Senator Durbin’s name as the senator behind the Durbin Amendment , the bill that is responsible for regulated interchange on debit cards issued by large banks and permitted minimum charges on credit cards. Now, Senator Durbin hopes to take on credit card interchange fees.

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Credit Cards Processors Debit Card Card Issuer 52

Stax

APRIL 4, 2024

Moreover, credit cards often provide other benefits like cashback and reward points, which are worth more than the surcharge fee. That’s why many buyers still prefer paying through credit cards despite the additional costs. Are Credit Card Surcharges Legal? In 2005, a group of U.S.-based

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Credit Cards Legal Laws Best Practices 68

PYMNTS

MAY 10, 2016

“The pie for card issuers in Europe is significant. Cash is increasingly being displaced by cards and the pie for cards is growing,” commented Richetta during the conversation. Why that’s music to the issuers’ ears potentially is related to the cap on interchange fees for credit and debit products.

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P2P Contactless Payments Payments Emerging Payments 44

Cardfellow

FEBRUARY 27, 2025

The Durbin Amendment and PIN Debit Routing In the processing world, the Durbin Amendment to the Dodd Frank Wall Street Reform and Consumer Protection Act (commonly just called the Durbin Amendment) gets the most attention for its cap on debit interchange fees.

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Debit Transaction AI Transactions Debit Network 40

Fintech Labs Insights

DECEMBER 23, 2015

Since credit card issuers were required to increase their prime rate by the same amount, the company is not concerned it will push away borrowers. The market cap is at $4.32 Yesterday peer-to-peer lending platform, Lending Club [NYSE: LC], offered one answer. The company went public in December 2014.

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Card Issuer Push-to-Card Fed Non-Bank 15

Stax

MARCH 14, 2024

ACH payments take up to three days to process and cost around 1% of the transaction with a $10 cap. Credit cards/B2B credit cards Credit cards are the staple of payments, but not every B2B business accepts them. Thus, it’s more secure. It’s also cost-effective.

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PYMNTS

DECEMBER 27, 2018

Contactless cards are a comparative rarity — most issuers don’t offer them and so, not surprisingly, most consumers don’t often use them. In November, Chase , the largest card issuer in the U.S., announced it’s rolling out tap-to-pay functionality across its Chase Visa card portfolio.

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Push-to-Card Privacy Contactless Payments Consumer 49

CB Insights

DECEMBER 4, 2019

In December 2017, Amazon’s Alexa Fund participated in a $16M Series A to Greenlight Financial, an alternative debit card issuer aimed at young consumers. With the card, parents can manage spending limits and allocate funds for their children through a mobile app. in 2017 and 2.6%

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Online and Mobile Banking Push-to-Card Payment APIs and Integration Non-Bank 101

Fintech Labs Insights

OCTOBER 1, 2024

dollars) Definition : Charge cards require the balance to be paid in full each month; credit cards allow the balance to be rolled over, often at a relatively high interest rate). Profiles: Challenger SMB Charge Card Issuers 1. Funding includes both equity and debt amounts (millions of U.S.

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Small Business Credit Cards Acquirers Processors 29

Fintech Labs Insights

DECEMBER 1, 2021

Definition : Charge cards require the balance to be paid in full each month; credit cards allow the balance to be rolled over, often at a relatively high interest rate). Profiles: Challenger SMB Charge Card Issuers. Market cap: $3.5B ( NASDAQ:EXFY) – Raised $301M ($263 in past 12 months via IPO) ( Crunchbase ).

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Small Business Credit Cards Acquirers Card Issuer 15