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Are you talking about the Durbin amendment? That's available to every bank with assets under $10B, not just Discover. If Capital One wanted higher swipe fees, t
by gruez 1y ago
Are you talking about the Durbin amendment? That's available to every bank with assets under $10B, not just Discover. If Capital One wanted higher swipe fees, there's hundreds of small banks that they can partner with to issue the cards. That's what many neobanks do.
- lxgr 1y agoNeither Discover nor Capital One are exempt by asset size: https://www.federalreserve.gov/paymentsystems/regii-interchange-fee-standards.htm https://www.federalreserve.gov/paymentsystems/regii-intercha... However, Discover is (largely; I believe at least Pulse is available to issuing banks other than Discover) also a three-party network, which is inherently exempt from the Durbin amendment: https://www.congress.gov/crs-product/R41913 https://www.congress.gov/crs-product/R41913