When a customer pays, the card they pull out changes what that sale costs you. A basic debit card is usually the cheapest card you can take. A premium rewards credit card is one of the most expensive. Most owners never see that difference, because their pricing hides it.
The federal debit fee cap
A 2010 law, often called the Durbin Amendment, told the Federal Reserve to cap the fee banks with more than $10 billion in assets can charge on debit cards. The Fed's rule, called Regulation II, has set the cap at 21 cents plus 0.05% of the sale, plus 1 cent for banks that meet fraud-prevention standards.
Debit cards from smaller banks and most credit unions are exempt from the cap, so they cost more, but usually still less than credit cards.
21¢ + 0.05%
The current cap on what a large bank can charge on a debit sale, plus 1¢ for fraud prevention
What the October 2026 court ruling means
On October 26, 2026, a federal appeals court (the Eighth Circuit) upheld a ruling that the Fed set the cap using costs Congress did not allow it to count. The court sent the rule back to the Fed to redo. The current cap stays in place until the ruling formally takes effect, and no new number has been set.
In plain English: the cap may come down in the future, but nobody knows when or by how much. Separately, the Fed has had its own proposal to lower the cap since 2023, and it has not been finalized. If the cap does drop, you will only benefit if your pricing passes card costs through to you.
This is a fast-moving legal issue. Check the reviewed date at the top of this guide.
Roughly what each card costs on a $50 sale
These are rough examples of the card bank's share (interchange) alone, before network fees and the processor's markup. Real numbers vary by card, business type and how the card is taken.
- Large-bank debit cardabout 25¢
- Basic credit cardabout 85¢
- Rewards credit cardabout $1.10
- Business or corporate card$1.35 or more
Why your pricing decides who keeps the savings
- Flat rate: one percentage on every card. You pay the same on a cheap debit card as on a rewards card, and the platform keeps the difference.
- Tiered: the processor sorts cards into buckets it defines. Debit savings may or may not reach you.
- Interchange-plus: the card bank's actual fee is passed through, plus a fixed markup. When a customer uses debit, your cost drops automatically.
Debit cards and surcharges
Card brand rules do not allow surcharges on debit cards, even when the customer runs it as credit. If you add a surcharge, your system has to tell debit and credit apart.
Common questions
Is it cheaper for a business when customers pay with debit?
Usually, yes. Debit cards from large banks have a federal cap on the bank's fee, so they cost much less than most credit cards. Whether you actually pay less depends on your pricing: interchange-plus passes the savings to you, flat rate does not.
Did the court get rid of the debit fee cap?
Not yet. In October 2026 a federal appeals court upheld a ruling that the Fed calculated the cap the wrong way and sent it back to the Fed to redo. The current cap stays until the ruling takes effect, and no new number has been set.
Can I charge customers a fee for using a debit card?
No. Card brand rules do not allow surcharges on debit cards. A cash discount or dual pricing program works differently and has its own rules.