Money & Finance › Payments & money movement › Interchange 'swipe' fees merchants pay on card sales
Durbin Amendment (2010): caps on debit card swipe fees
2010; Reg II since 2011· Law or rule
Fact, law or dataA rule, statute, definition or measured number.
A 2010 law that capped the 'swipe fees' big banks charge merchants on debit cards and required a choice of networks.
See it on the Money & Finance map →How it works
Before it, debit interchange averaged about 44 cents a transaction. Section 1075 of Dodd-Frank told the Fed to set fees 'reasonable and proportional' to cost for issuers with $10 billion or more in assets. Regulation II, in force October 1, 2011, set 21 cents plus 0.05% plus a 1-cent fraud adjustment: 24 cents on a $40 sale. Smaller banks are exempt. In August 2025 a North Dakota federal court vacated Regulation II but paused that ruling during the Fed's appeal.
Why it matters
It nearly halved what big banks earn per debit swipe; banks responded by cutting free checking and debit rewards and steering customers to credit cards.
Facts, rules and data
Dodd-Frank section 1075, the Fed's Regulation II and its biennial surveys of issuer costs, the Fed's 2023 proposal to cut the base fee to 14.4 cents, and the Corner Post court record.
Debates and risks
Whether merchants passed savings to shoppers (Richmond Fed research found little sign of it), and whether the cap should fall, rise or be struck down.
Connections (3)
▸Durbin Amendment (2010): caps on debit card swipe fees capped debit Interchange 'swipe' fees merchants pay on card salesFact, law or data
The connection
Interchange is paid by the merchant's bank to the cardholder's bank on each sale. Durbin told the Fed to cap debit interchange for issuers with $10 billion or more in assets. The Fed set 21 cents plus 0.05% plus 1 cent, roughly halving the old average of about 44 cents. Credit card interchange, often about 2%, was not capped.
When and why
Regulation II took effect October 1, 2011; the Fed proposed cutting the base to 14.4 cents in 2023, and a 2025 court ruling against the rule is on appeal.
How we know
The Fed's Regulation II, its biennial reports on issuer costs and fee revenue, and the Corner Post v. Federal Reserve court record.
Debates and risks
Whether the cap is too high (merchants' view), too low (banks' view), or beyond the statute, as a 2025 North Dakota ruling now before the Eighth Circuit held.
▸Durbin Amendment (2010): caps on debit card swipe fees was part of Dodd–Frank Act (2010)Fact, law or data
The connection
Senator Dick Durbin of Illinois added the swipe-fee cap to the Senate's financial-reform bill as an amendment; it became section 1075 of Dodd-Frank, amending the Electronic Fund Transfer Act. It rode along with the post-crisis reforms even though debit fees played no part in the 2008 crisis.
When and why
Passed the Senate 64–33 on May 13, 2010; Dodd-Frank was signed into law July 21, 2010.
How we know
The congressional record and Dodd-Frank's text, whose section 1075 adds section 920 to the Electronic Fund Transfer Act.
Debates and risks
Whether a fee cap belonged in a crisis bill is still argued; banks sought repeal for years, while retailers seek similar limits on credit cards.
▸Durbin Amendment (2010): caps on debit card swipe fees requires two unaffiliated networks on Debit cards and PIN networks (Star, NYCE, Pulse)Fact, law or data
The connection
Every debit card, from a bank of any size, must work on at least two unaffiliated networks, such as Visa plus a PIN network like Star, NYCE, Pulse or Accel. The merchant, not the bank or Visa, chooses the route. A 2022 Fed rule, effective July 2023, made clear this applies to online purchases too.
When and why
Effective April 1, 2012 for most issuers; the online clarification took effect July 1, 2023.
How we know
Regulation II section 235.7, the Fed's 2022 final rule, and the Justice Department's September 2024 antitrust suit alleging Visa blocked routing competition.
Debates and risks
Whether Visa illegally kept most debit traffic, as the Justice Department alleges, is still being litigated.