WASHINGTON—Representatives of the Federal Reserve met with America’s Credit Unions and other trade associations who are opposed to the Fed’s debit interchange proposal.
Federal Reserve Chairman Jerome Powell and Board of Governors members Adriana Kugler and Christopher Waller were in attendance at the meeting.
As CUToday.info has reported, 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.
ACU’s Andrew Morris, senior counsel for research and policy, expressed concern about the proposal’s potential effects 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.
Additional Request
In addition, 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, according to ACU.
Comments on the Fed’s proposal are due May 12.
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