WASHINGTON — The Federal Reserve Board Tuesday published a list of which banks must comply with the central bank's cap on debit-card swipe fees, as well as a list of those exempt from the cap.
The Fed, required by the Dodd-Frank Act to limit debit interchange fees, instituted the 21-cent cap last month. Under Dodd-Frank, institutions with assets less than $10 billion are exempt from the cap, although banks say the market will ultimately force small banks to comply as well.
The central bank limited the fee covered banks can charge merchants every time they process a debit card to 21 cents. They will be allowed to charge 1 cent extra if they comply with certain fraud prevention criteria, and assess a 5-basis-point charge based on the amount of the transactions to offset fraud losses. Compliance is required by Oct. 1.
To view the lists of which banks are and are not subject to the new cap, visit federalreserve.gov/paymentsystems/debitfees.