Network Branded Prepaid Card Association applauds Fed for extending deadline to implement new Debit Interchange Rate but raises concerns

While the Network Branded Prepaid Card Association (NBPCA) applauds the decisions of the Federal Reserve Board to adopt a more reasonable interchange fee cap, a routing system that requires only two unaffiliated networks and extends the deadline for implementation until October 1, 2011, NBPCA also has concerns. Unfortunately, the Board also has issued a final debit interchange rule that will disqualify many general purpose prepaid cards and payroll cards from receiving an exemption from the new interchange rate. Under the new rule, effective October 1, 2011, a bank issuer may charge an interchange fee of 21 cents per transaction plus 1 cent for fraud prevention and an additional 5 basis points on the transaction amount to account for fraud losses.

To view the Press Release :

Fed Final Debit Interchange Rule Press Release

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