Last call to oppose debit card interchange rule
Published by: Sean Brown
May 1, 2024 | Regulatory
History has shown us that the current interchange system works, and reductions in interchange only lead to more money for merchants. Cards, compliance, and cybersecurity all have a cost, and that cost has never been under more scrutiny. That is why the League needs your help opposing the Federal Reserve’s proposal to adjust the fees received by card issues from debit card interchange. The proposal is not favorable for the issuer part of the cards-ecosystem as it would decrease debit interchange income for covered issuers ($10B+), establish a new and lower price point for issuer costs, and create a new biennial price-setting mechanism without the courtesy of analysis, transparency, and commentary.
Regardless of size, Ohio credit unions with debit card programs will be impacted by any debit interchange pricing shifts. The League is asking all credit unions to submit this Call-to-Action to remind the Federal Reserve that the current interchange system works for everyone: financial institutions, merchants, and consumers. All comments are due by May 12, 2024
Contact Sean Brown for questions or assistance.
