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Table of Contents

Lead Story

Industry self-policing: A lofty goal?

Patti Murphy
ProScribes Inc.

News

Industry Update

Federal Reserve sets debit interchange at 21 cents

Visa to update forecast after Fed sets debit interchange

More regs, requirements from FFIEC, PCI council

Fraudsters nailed, proactive security initiatives needed

The 25 most dangerous software errors in 2011

Features

Wal-Mart wants to bank the underserved

Patti Murphy
ProScribes Inc.

Microfinance and profits

Patti Murphy
ProScribes Inc.

Electronic billing for SMBs

The three R's of text message marketing

Pal Flagg
Street Savings

ISOMetrics:
Breaches across America

Selling Prepaid

Prepaid in brief

Is the new AmEx prepaid card a game changer?

Case study: Prepaid electricity metering

Views

Are you ready for the NFC paradigm shift?

Scott Henry
VeriFone Inc.

Education

Street SmartsSM:
Networking groups and referral marketing - Part 1

Bill Pirtle
MPCT Publishing Co.

Use communication to cut merchant attrition

Jeff Fortney
Clearent LLC

Finding the right payment processor

John Barrett
First Data Corp.

Social media: Putting your company's best face forward

Peggy Bekavac Olson
Strategic Marketing

What is my portfolio worth anyway?

Adam Atlas
Attorney at Law

Company Profile

Capital Access Network Inc.

New Products

Award winning loyalty technology

Paycloud
SparkBase

Less churn, more earn in health care

Revenue Maximizer
TransEngen Inc.

Inspiration

Make children your business

Departments

Forum

Resource Guide

Datebook

A Bigger Thing

The Green Sheet Online Edition

July 11, 2011  •  Issue 11:07:01

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Visa to update forecast after Fed sets debit interchange

Visa Inc. said it will update its 2011 financial forecast on July 6, one week after the Federal Reserve Board discloses its final determination of debit interchange rate limits. The Wall Street Reform and Consumer Protection Act of 2010 carries in it an amendment promoted by Sen. Dick Durbin, D-Ill., that requires the Federal Reserve to set interchange rates that are "reasonable and proportional' to costs.

After grappling with the requirement for the last year, the Fed revealed its final rule for the debit card interchange rate June 29. (See "Federal Reserve sets debit interchange at 21 cents" in this issue's news section - July 11, 2011, issue 11:07:01). Currently, issuers charge an average of 44 cents per debit transaction. The Fed initially proposed cutting the rate to as little as 12 cents - a 75 percent cut.

Fed bends, banks still to lose income

Experts expected the final interchange rate to be higher than 12 cents to allow for investment in fraud prevention initiatives and to account for processing costs, but the industry could still lose as much as $20 billion in fees as a result of the Durbin Amendment. The final rule will take effect Oct. 1. The financial update will fulfill a promise Visa management made in its last earnings update to reassess its 2011 financial outlook after the Fed rule on debit interchange is announced.

"Visa's business foundation remains solid and we will continue to be a growth company," Visa said in a statement. "Our global network, strong client relationships, product and service offerings, and global brand underpin our ongoing success. As we have done throughout our history, we will continue to adapt our strategies to ensure our long-term success including aggressive investments to grow our global presence and the introduction of innovative new products and services."

For additional news stories, please visit www.greensheet.com and click on "Read the Entire Story" in the center column below the latest news story excerpt. This will take you to the full text of that story, followed by all other news stories posted online.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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