NAFCU CEO Fred Becker said credit union members would be those most hurt by the Federal Reserve's proposed rule capping debit card interchange at 12 cents.
"While we recognize the Federal Reserve was challenged by a poorly drafted law, we hope it will carefully consider all the ramifications of this proposed rule and use all its flexibility within the confines of the statute to make it workable for credit unions and all other card issuers," Becker said.
"Otherwise, credit unions will be severely disadvantaged in a marketplace tilted toward bigger players as they struggle to offer products and services to their members at competitive rates and with low fees. Ultimately, this proposed rule could severely impair credit unions' ability to provide low-cost financial services to 92 million Americans."
The Federal Reserve is accepting comments on the proposed rule until Feb. 22. Both NAFCU and CUNA have urged credit unions to comment on the impact of the rule on their operations.