Fed Approves New Debit Transaction Cap
The Federal Reserve on Wednesday approved a 21 cent cap on debit transactions plus an additional cent to help pay for fraud protection and five more basis points to account for losses due to fraud.
The new rule, which would take effect on Oct. 1, is a change from the proposed rule which would have capped fees at 12 cents and was based on staff recommendations.
The Fed received 11,570 comments and credit unions and banks had unsuccessfully urged Congress to delay implementation until next year. The rule was supposed to take effect in July.