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Today: Fed meets on interchange
The Federal Reserve Board of Governors will meet today on debit card interchange fees and routing under Regulation II. Ahead of the meeting, NAFCU, along with several trade groups, wrote to the Fed, urging them to reject misleading requests from merchants to make changes to the regulation. Instead, the groups called on the Fed to consider the costs of the regulation on regulated entities and their customers.
The trades flagged concerns with the Fed’s modifications to Regulation II that went into effect earlier this year and the lack of data to quantify how the routing rule has affected the market. They called on the Fed to refrain from any further Regulation II changes until it can analyze the impacts of the rule.
In addition, the groups highlighted concerns related to further reducing the current interchange cap, the trend of merchants and processors manipulating routing rights for card-not-present transactions, using outdated data and factors to inform rulemaking efforts, and the impact on consumers.
NAFCU will monitor the meeting and update credit unions via NAFCU Today. The association will continue to fight to protect interchange fees and other noninterest income to ensure credit unions can keep providing their members with safe, reliable, and affordable financial services.