Free checking and debit card incentives are here to stay regardless of what happens with the Durbin Amendment because both continue to make sense for banks.
Fact No. 1: Net interchange revenue, the focus of Durbin, is only about 15% of the total revenue of the average DDA.
Fact No. 2: On average, 85% of revenue per account is directly related to debit card use.
Fact No. 3: Personal Identification Number (PIN) transactions are as profitable, or more so, than signature debit transactions and experience substantially less fraud losses.
Fact No. 4: Free checking is here to stay.
Read more: BAI
Tags: banks, debit card, debit transactions, durbin amendment, fraud losses, free checking, incentives, interchange, personal identification number
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