2025 Regulatory Summit

The Durbin Divide

• Durbin Amendment – Enables the Board to “prescribe regulations[] . . . regarding any interchange transaction fee,” to “implement this subsection.” – Requires interchange fees to be “reasonable and proportional” to issuer costs. – Standard distinguishes between: • Incremental ACS costs tied to a specific debit transaction (authorization, clearance, settlement). • Other issuer costs that are not to a particular debit transaction, • Regulation II (2011) – Permitted inclusion of certain non-incremental ACS costs : • Fixed ACS costs • Network processing fees • Transaction-monitoring expenses • Fraud-loss adjustment • Breaking Court Developments – Recent cases reveal a potential split in interpreting Loper :

• North Dakota (Corner Post) • Kentucky (Linney’s Pizza)

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Judicial Review After Loper

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