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Most credit unions are still doing OK on debit interchange rates, according to a new survey. Ten years ago, financial institutions reported receiving a weighted average interchange of $0.41 for each consumer debit transaction.
With the Dodd Frank interchange rate cap in effect since fourth quarter 2011, large issuers (>$10 billion in assets), earned a weighted average of $0.24 per debit transaction in 2014, while exempt financial institutions (<$10 billion) earned $0.40, according to the 2015 Debit Issuer Study, commissioned by Pulse.
Also according to this year's study data, exempt issuers generated average annual debit interchange revenue of $112 per card. Regulated issuers received average interchange income of $59 per card, with transaction growth helping to offset a portion of the impact of lower per-transaction rates.
This year's study was the 10th installment in the series and was conducted by Oliver Wyman, an independent management consulting firm.
