A Judge’s Debit Card Ruling May Shape Credit Card Issuer Strategies Moving Forward
Julian Morris, Senior Scholar at ICLE, was quoted in this CardRates.com article on how a North Dakota judge’s ruling limiting debit card interchange fees could prompt large banks to alter strategies, with Capital One benefiting by using Discover’s debit network to bypass the Durbin Amendment. Read the full article here.
If there’s any large card issuer that greeted the ruling with enthusiasm, it may have been Capital One, according to Julian Morris, a Senior Scholar at the International Center for Law & Economics.
“This creates an even bigger opportunity for Capital One, which can shift its customers to Discover’s three-party debit network, thereby avoiding the Durbin Amendment altogether and enabling it to both offer premium debit products and enhance its offerings to lower income customers,” Morris told us.
Morris told us “banks will be further incentivized to encourage customers to use and switch to credit cards” if Traynor’s decision stands.