America’s Credit Unions’ Andrew Morris and other industry trade associations met with Federal Reserve Chairman Jerome Powell and Board Governors Adriana Kugler and Christopher Waller Wednesday to reiterate the organizations’ opposition to the debit interchange proposal. This is the organization’s fourth meeting with the Fed this year.
The proposal would make changes to update all three components of Regulation II’s interchange fee cap based on the latest data reported to the board by large debit card issuers.
Morris expressed concern about the proposal’s potential impact on both covered and exempt issuers, as well as consumers if institutions raise fees on previously free products to make up for the lost interchange revenue. Additionally, Morris emphasized that the Fed should consider relevant data regarding 2022 amendments to Regulation II’s routing provisions to understand how merchant preference for lower cost single message networks might impact overall debit interchange revenue.
Comments on the Fed’s proposal are due May 12, and America’s Credit Unions continues to collect data and other information in preparation to submit feedback from member credit unions.
America’s Credit Unions will continue to engage the Fed on this issue and advocate on behalf of credit unions.
