With the Federal Reserve's April 21 deadline to craft a final rule on government controls on interchange fees quickly approaching, the House Financial Services Committee has tentatively scheduled a 2/17 hearing to study the Fed's planned implementation.CUNA urges an outright repeal of the proposed interchange fee regulations. However, in the absence of repeal, it argues that lawmakers and the Fed should take time to review the interchange rules, and urges lawmakers to conduct hearings on the Fed’s proposal.
The Fed's interchange provisions, released in December, could cap debit card interchange fees that are paid by merchants to card issuers at as little as 7 cents/transaction. While issuers with under $10 billion in assets would technically be exempt, the rule doesn't provide enforcement to prevent discrimination against small-issuer cards by merchants under the proposed two-tier system.
The Fed proposal is open for public comment until 2/22.
Credit union professionals, volunteers, and members are urged to visit CUNA's online Grassroots Action Center to easily send the Fed a pre-drafted email to weigh-in on this important issue. It is vital that credit unions participate in this effort to reinforce to the Fed the importance of getting this proposal right for the future of credit union debit card programs. Visit the Grassroots Action Center to send comments now.
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