Senate bill introduced to stop, study Fed debit interchange proposal

Sen. Ted Budd, R-N.C., introduced the credit union-supported Secure Payments Act Tuesday, which would halt implementation of the Federal Reserve’s debit interchange proposal until its impact can be studied. America’s Credit Unions strongly opposes the Fed’s proposal and has called for it to be withdrawn.

“Credit unions need access to as many resources as possible to provide critical services in rural and underserved communities across America, and we’ve already seen that debit interchange restrictions limit those resources and ultimately hurt consumers,” said America’s Credit Unions President/CEO Jim Nussle. “The Federal Reserve’s proposal to reform all three components of the Regulation II interchange fee cap deserves a study to fully understand its potential consequences. Senator Budd has been a friend in this fight, and we thank him for introducing a commonsense piece of legislation that will bring real time data and evidence to the Federal Reserve’s effort. America’s Credit Unions looks forward to supporting policies that allow people to live their best financial lives.”

Nussle wrote to Budd in support of the legislation, and America’s Credit Unions signed onto a joint letter of support. The Carolinas Credit Union League (CCUL) and several North Carolina credit unions also wrote in support of the bill.

“This important legislation would require the Fed to stop and appropriately scrutinize the harmful impact of their misguided proposal to reduce the regulated interchange cap under Regulation II on credit unions and other banking services,” wrote CCUL President/CEO Dan Schline. “The Fed’s proposal to further reduce debit interchange fees under Regulation II is just one of many new federal regulations that would have tangible, and potentially detrimental, consequences for credit unions of all sizes, their members, and their communities.”

Sens. Thom Tillis. R-N.C., Steve Daines, R-Mont., Bill Hagerty, R-Tenn., and Katie Britt, R-Ala., introduced the bill with Budd.

Rep. Blaine Luetkemeyer, R-Mo., introduced a House version of the bill in March, which has 13 additional co-sponsors.

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