Open Board Meeting June 29, 2011 | Summary and Q&A

9.5K views
June 29, 2011
by
Federal Reserve
YouTube video player
Open Board Meeting June 29, 2011

TL;DR

The Federal Reserve has implemented a final rule on debit card interchange fees and routing, aiming to balance the needs of issuers, merchants, networks, and consumers. The rule establishes standards for assessing interchange fees and prohibits network exclusivity. The impact on consumers is uncertain, as issuers may raise fees while merchants may lower prices. The rule may also impact innovation in the payment system.

Install to Summarize YouTube Videos and Get Transcripts

Key Insights

  • 🤱 The final rule establishes standards for assessing interchange fees and prohibits network exclusivity.
  • 🤱 The impact on consumers is uncertain, as fees and prices may change.
  • 📏 The rule may impact innovation in the payment system, but certain aspects aim to promote flexibility and competitiveness.

Transcript

CHAIRMAN BERNANKE: Good afternoon, everybody. We're meeting today to review the final rule implementing the Debit Card Interchange provision to the Dodd-Frank Act. We're approaching the one-year anniversary of Dodd-Frank. The Federal Reserve has been given substantial and important new responsibilities under this act, and we have been working dilig... Read More

Questions & Answers

Q: What are the main components of the final rule on debit card interchange fees and routing?

The final rule establishes standards for assessing interchange fees and prohibits network exclusivity.

Q: How many comments were received on the proposed rule?

The Federal Reserve received over 11,000 comments on the proposed rule.

Q: How will the final rule impact consumers?

The impact on consumers is uncertain. Issuers may raise fees, but merchants may lower prices. The final rule aims to balance the needs of all parties involved in the debit card system.

Q: Will the final rule hinder innovation in the payment system?

The final rule may impact innovation, but certain aspects of the rule are designed to mitigate negative effects. The rule does not prescribe specific technologies, allowing issuers flexibility in developing fraud prevention methods.

Summary & Key Takeaways

  • The Federal Reserve has implemented a final rule on debit card interchange fees and routing to comply with the Dodd-Frank Act.

  • The rule establishes standards for assessing interchange fees and prohibits network exclusivity.

  • The impact on consumers and innovation in the payment system is uncertain.

Share This Summary 📚

Summarize YouTube Videos and Get Video Transcripts with 1-Click

Download browser extensions on:

Explore More Summaries from Federal Reserve 📚

Summarize YouTube Videos and Get Video Transcripts with 1-Click

Download browser extensions on: