If the Federal Reserve’s proposal to reduce the debit interchange fee cap is finalized, consumers will pay an extra $1.3 billion to $2 billion annually in higher bank account fees, and there will be no way to measure whether merchants passed on their savings to customers, according to a new white paper.
The Federal Reserve announced that it has extended the public comment deadline to May 12 for its proposal to lower the cap on debit card interchange fees.
Interchange fees are “a relevant component” for helping make Bank On accounts economically sustainable for participating financial institutions, the Cities for Financial Empowerment Fund said in a letter to the Federal Reserve about its proposal to substantially lower the cap for debit interchange fees.
The cumulative impact of Durbin 2.0, the CFPB’s late fees proposal and the Basel III endgame could seriously harm credit card users.
A Federal Reserve proposal to significantly tighten the cap on debit card interchange compensation earned by banks has introduced sustainability concerns for smaller and medium-sized financial institutions that are trying to stay independent rather than merging, the members of the Fed’s Community Depository Institutions Advisory Council told the agency.
From the Basel III endgame to Regulation II to new Community Reinvestment Act and Section 1071, 2023 has delivered a regulatory onslaught for the industry. How are bankers navigating the waves of overlapping changes?
The Federal Reserve was not “legally required” to reopen debit card interchange caps and should not have done so, former Fed Vice Chairman for Supervision Randal Quarles recently said.
With the availability of credit card rewards at stake under the Durbin-Marshall credit card bill, bill sponsor Sen. Roger Marshall dismisses consumer concerns about their rewards.
Despite its name, the Credit Card Competition Act would not increase competition but instead hurt consumers and benefit big-box retailers, ABA and nine financial sector trade groups said in a joint letter to Congress.
ABA joined four other financial trade associations in a letter to the Federal Reserve last week seeking an extension for the effective date of a recent final rule amending Regulation II (the implementing regulation for the Durbin Amendment).