NCUA Chairman Debbie Matz praised the Federal Reserve’s new rule on debit interchange fees and said it took into account the agency’s concerns about the impact on the safety and soundness of small credit unions.
The Fed on Wednesday 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.
“NCUA had strong concerns about the initial interchange fee proposal. The final regulation adopted today, however, addresses concerns raised by NCUA during the rulemaking process,’’ Matz said in a statement.
She praised the Fed for taking into account credit unions with less than $100 million in assets. She added that the “higher interchange fee amounts included in today’s rule are a step in the right direction.”
CUNA President/CEO Bill Cheney said they are “appreciative that the Federal Reserve listened to the real concerns of credit unions and other small issuers with the proposal and attempted to take steps to address those problems within the very limiting confines of the enabling statute."
NAFCU Vice President for Regulatory Affairs Carrie Hunt said the rule “doesn’t go as far as we would like in terms of covering the costs for our members. It’s an improvement over the proposed rule but there is still work to be done to ensure that small issuers are protected, as Congress intended.”