In 2010, the Durbin Amendment required the Federal Reserve Board of Governors to cap the debit card interchange fees that large banks charge. It also required card networks to provide merchants with an option to route through at least one additional network.

What is Durbin exemption?

The Durbin amendment exempts financial institutions with less than $10 billion in assets, which excludes most community banks and credit unions. Many smaller institutions offer free checking, and some still provide rewards on debit card usage. You could also use a rewards credit card.

When did Durbin amendment go into effect?

When the amendment went into effect in October 2011 these charges were capped at 12 cents. There were also additional provisions in the Durbin Amendment that affected regulated and unregulated debt.