Fed Extends Interchange Proposal Comment Deadline to May 12

The Federal Reserve extended the comment deadline on its interchange proposal to May 12, an additional 90 days past the original Feb. 12 deadline.

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In a sweeping move, the Federal Reserve Board last October proposed a steep reduction of almost one-third in the core component of the interchange fees paid to institutions covered by the regulation and a separate reduction for a component that generates interchange income based on the purchase amount. The fraud prevention cost component of debit card interchange would rise from 1 cent per transaction to 1.3 cents per transaction.

“We have carefully examined the Federal Reserve Board’s proposal and will submit comments. We know the fraud costs our credit unions are facing continue to mount and we must have fairness in the system,” said League President/CEO Carrie Hunt. “The League remains engaged with policymakers on this issue because we understand the debit interchange fee cap had an impact on every financial institution, not just those issuers with $10 billion or more in assets. We know, too, that the price cap imposed on debit interchange fees is a failed policy that’s had a disastrous impact on the cost and availability of basic banking services, harming low- and moderate-income Americans.”

Related: League Will Comment on Federal Reserve Board's Proposed Rule for Revision of Debit Interchange Fee Cap
Related: Federal Reserve Proposes Changes to Debit Interchange Cap