Colloquy

Could the new financial reform law cause U.S. Bank to end debit rewards?

07/23/2010

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An article at Payments Source states: "U.S. Bancorp may reduce or eliminate debit card reward programs and offset actions in its acquiring business in response to financial reforms that likely will reduce debit card interchange revenues, Andrew Cecere, vice chairman and chief financial officer, told analysts July 21 during a conference call to discuss second-quarter earnings. The company previously indicated "total debit interchange revenue in 2009 was approximately $500 million on about $37 billion of total sales volume," Cecere explained. Under the financial reform law President Obama signed into law today, the Federal Reserve Board will evaluate and set most debit card interchange rates next year."

For more COLLOQUY POV on the new financial regulations just signed into law, read Kelly Hlavinka’s blog postings here and here.

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