Regulated vs exempt debit: why debit can cost 22 cents or 1.5%
Updated October 19, 2026
Two kinds of debit
Federal debit rules (Regulation II) cap interchange on debit cards from banks with $10 billion or more in assets at 21 cents plus 0.05% of the sale, plus 1 cent for issuers that meet fraud-prevention standards. These are regulated debit sales.
Cards from smaller banks and most credit unions are exempt. Their interchange follows the card network schedules, often about 0.80% to 1.65% plus 15 cents.
The Federal Reserve reports that about 60.7% of debit transactions were regulated in 2024. Your share depends on where your customers bank.
Why sale size matters
A fixed 22 cents is cheap on a $60 sale (about 0.37%) and expensive on a $6 sale (about 3.7%). For very small sales, exempt or small ticket debit can cost less than regulated debit. That is why FeeHound checks more than one debit mix before setting the top of your fair range.
The rule may change
The cap is being challenged in court. FeeHound uses the cap in force and checks the status at least every 60 days.
This is information, not legal or financial advice. Processor and network names are used only to say which statement a guide covers.