The Federal Reserve’s proposal to further lower debit interchange fees was the top priority during a meeting between America’s Credit Unions’ Andrew Morris, along with other trade groups, and Federal Reserve Vice Chair Michael Barr Monday. America’s Credit Unions has met with most of the Fed’s Board of Governors to discuss this proposal.
Morris reiterated credit unions’ opposition to lowering the debit interchange cap and raised concerns related to the sustainability of free and affordable banking services. The proposed changes would adjust all three components of Regulation II’s interchange fee cap, calculated using information that is weighted towards the cost experience of the largest, highest volume debit card issuers.
Comments are due to the Fed May 12, and Leagues and credit unions are encouraged to submit comments. America’s Credit Unions will continue advocating to protect the interchange system.
