Also called: Debit card processing fees, Debit interchange, Durbin fees
What debit fees are
When a customer pays by debit card, your business pays costs to accept and process the transaction. Those costs include interchange, network fees and your processor’s markup. Interchange goes to the cardholder’s issuing bank. Network fees pay for transaction services, while the processor markup is the processor’s charge for its services.
The Federal Reserve reported that debit and general-use prepaid interchange averaged $0.34 per transaction, or 0.73% of the transaction value, in 2023. That is a national average, not a quote for your business or a measure of all the fees on your bill.
The debit interchange cap does not cap your network fees or processor markup.
How the costs are set
Card networks set interchange rates, and the issuing bank receives the interchange. Networks also charge separate fees for processing. Your processor passes wholesale costs through to you under your pricing plan and adds a markup. Interchange and network fees are not negotiable, but you can negotiate the processor markup.
In 2023, network fees averaged $0.129 per transaction across debit and general-use prepaid transactions. This is a separate Federal Reserve measure from interchange, so do not add the two averages together as if they describe one standard transaction.
Interchange cap on a $100 covered debit sale
| Base cap | $0.26 |
|---|---|
| With fraud adjustment | $0.27 |
Illustrative calculation using the Regulation II cap as of 2026. It covers interchange only, not network fees or processor markup.
What the debit fee cap means
As of 2026, Regulation II caps interchange on covered debit cards issued by banks with $10 billion or more in assets at 21 cents plus 0.05% of the transaction. An eligible issuer can receive an additional 1 cent for meeting fraud-prevention standards. The cap applies to interchange, not your network fees or processor markup.
For a $100 covered debit sale, the interchange cap is $0.26, or $0.27 when the additional fraud-prevention adjustment applies. These figures are illustrative calculations of the legal cap, not your complete processing cost. Debit cards from smaller issuing banks are not subject to this cap.
How routing and pricing affect your bill
Regulation II requires at least two unaffiliated networks on every debit card. That gives your acquirer a choice of routes, including networks with different costs. Routing can affect your debit expense, but the savings depend on your processor’s setup and whether lower network costs reach your bill.
Your pricing model also matters. With interchange-plus pricing, interchange and processor markup are shown separately, making it easier to see whether regulated debit costs pass through correctly. A bundled or flat rate can hide those differences, so lower debit interchange does not automatically mean a lower charge to your business.
What you can actually change
- Separate the costs. Review your statement for debit interchange, network fees and processor markup. Compare the markup and any added debit-specific charges across offers.
- Check regulated debit. Compare your interchange charges for cards issued by banks with $10 billion or more in assets against the Regulation II cap, which is 21 cents plus 0.05% and, for eligible issuers, 1 cent.
- Review debit routing. Ask your acquirer which unaffiliated networks are enabled for debit routing and whether the resulting network costs are passed through to your business.
Frequently asked questions
What is the average debit card processing fee?
The Federal Reserve reported average debit and general-use prepaid interchange of $0.34 per transaction, or 0.73% of transaction value, in 2023. That figure covers interchange, not your total debit processing cost, which also includes network fees and processor markup.
Are debit card fees capped?
As of 2026, Regulation II caps interchange on covered debit cards issued by banks with $10 billion or more in assets at 21 cents plus 0.05% of the transaction, with an additional 1 cent for eligible issuers. The cap does not apply to network fees or processor markup.
Can you negotiate debit card fees?
You cannot negotiate network-set interchange or network fees. You can negotiate your processor’s markup and review whether your pricing model passes through lower debit costs. Interchange-plus pricing separates interchange from markup, which makes those charges easier to compare.