Thursday, July 14, 2011
The Durbin Amendment stipulates that debit card issuing banks that have assets of less than $10 billion are exempted from the interchange fee restrictions imposed by the Fed and that go into effect Oct. 1, 2011.
In March 2010, SellingPrepaid reported that Green Dot Corp. filed paperwork with the U.S. Securities and Exchange Commission for its initial public offering (which took place in July 2010). In an apparently related filing, the Monrovia, Calif.-based prepaid card company applied through the Federal Reserve Bank of San Francisco to become a bank holding company by acquiring Bonneville Bancorp of Provo, Utah. The acquisition reportedly would allow Green Dot to issue its own prepaid cards.
In January 2011, Green Dot issued a press release that stated Bonneville Bank was selected by the U.S. Department of Treasury to be the prepaid debit card issuer for the Treasury's tax refund pilot program; additionally, Bonneville Bank selected Green Dot to be the program manager for the pilot.
The Fed also published a list of banks that are not exempted from the Durbin Amendment. Both lists are available at www.federalreserve.gov/paymentsystems/debitfees.htm .
The Green Sheet Inc. is now a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals. Click here for more information.
Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.