WASHINGTON–The Federal Reserve has extended until May 12 the comment period on its interchange fee proposal.
The Fed said it extended the comment period to allow the public more time to analyze the proposal and prepare their comments. Comments on the proposal were originally due by Feb. 12.
As CUToday.info reported, in October 2023 the FED put out a request for comment on a proposal to lower the maximum interchange fee that a large debit card issuer can receive for a debit card transaction. Credit unions blasted the plan as a way for “greedy merchants to line their own pockets,” while retailers called it a “step in the right direction.”
The Federal Reserve has also now published additional data related to the interchange fee cap in order to give the public additional information as they consider the proposal. The additional data are available here.
Additional Component
The proposal would also establish a regular process for updating the maximum amount every other year going forward. By law, the Fed is required to establish standards for assessing whether an interchange fee received by a large debit card issuer for processing a debit card transaction is reasonable and proportional to certain issuer costs.
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