Credit unions got a bit of good news when the Federal Reserve reversed itself and announced that debit interchange fees will be capped at 21 cents a transaction, up from the original proposal of 12 cents, with a 1 cent fee for fraud prevention and a five basis point allowance for fraud costs.
The rule, which the Fed approved 4-1 on June 29, takes effect on Oct. 1. It is the culmination of extensive debate on Capitol Hill and at the Fed, which was triggered by the Durbin amendment to last year's financial overhaul bill that required the Fed to issue a rule that capped interchange fees.
While the Durbin amendment included a carve out for issuers with assets of $10 billion and less, several Fed governors said they weren't sure that it could be implemented.
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