Revenue Dynamics of Debit Cards Since Dodd-Frank

Amid the ever-shifting payments landscape, debit also stands to be transformed by changing regulations and shifting consumer habits. New routing regulations could have an impact on cost and revenue, given the flourishing world of e-commerce and mobile payments. Proposed federal legislation on credit cards could blunt popular rewards programs and shift usage toward debit cards.

This Javelin Strategy & Research report looks at the terrain of debit interchange—what it is, how costs rise and fall, how it is used by issuers—and considers the various factors that could affect it as financial institutions look to boost their interchange revenue and merchants try to control their own costs.

Key questions discussed in this report:

• What is interchange?
• What drives interchange costs up, and how can interchange fees be reduced?
• How can interchange revenue increase, and how can interchange fees get used?

Companies Mentioned:

ACCEL, AFFN, American Express, ATH, Block, Chase, Culiance, Discover, Federal Reserve, FIS, Fiserv, Interlink, Jeanie, Kroger, Maestro, Mastercard, NYCE, PULSE, Shazam, STAR, UnionPay, Visa