ICBA and other groups released a document correcting myths surrounding the Federal Reserve’s proposed changes to Regulation II on debit card interchange.
Fed Proposal: The Fed proposal would lower the maximum interchange fee that covered debit card issuers may receive for debit card transactions under Reg II. The proposal would adjust the interchange fee cap for debit card issuers with at least $10 billion in assets and establish a regular process for updating the maximum amount every other year based on issuer cost data.
Myth vs. Fact: The myth/fact document spotlights the harmful impact of interchange regulations on access to banking services, merchant backtracking on their pledges to reduce prices, and how merchants benefit from accepting debit cards.
ICBA Advocacy: ICBA has expressed deep concerns about the impact of the proposal on community banks and supports legislation introduced by Rep. Blaine Luetkemeyer (R-Mo.) directing the Fed to stop and study its proposed changes before finalizing the rule.
Grassroots Campaign: Meanwhile, ICBA continues calling on community bankers to urge their members of Congress to oppose the Credit Card Competition Act (S. 1838/H.R. 3881), which would extend routing restrictions to credit card transactions.