2 PAYMENT METHOD PROFILES: CARD
Pricing Trends CMSPI estimates that debit card routing can save U.S. retailers billions each year, and data from the Federal Reserve shows how significant those savings can be. 220 Interchange Between the introduction of Regulation II - which introduced competitive network routing dynamics for U.S. retailers - and 2023, the average interchange on a single-message, unregulated debit transaction fell by nearly 6% reaching 0.68%. Conversely, the average interchange of dual-message, unregulated debit - where there’s historically existed less competition due to limitations in CP and CNP PINless network enablement - has only fallen by about 2% in the same period. 221 The data suggests that competitive forces have been effective in maintaining pricing efficiencies for U.S. retailers.
Reduction in Average Unregulated Interchange 2011 (post-Durbin) to 2023
0.00%
-1.00%
-2.00%
-3.00%
-4.00%
-5.00%
-6.00%
Single-Message
Dual-Message
Debit Network Type
Graph 2.21 222
89
Powered by FlippingBook