The Federal Reserve said Sept. 18 it is not planning to propose a change to the current interchange fee standard or fraud prevention adjustment.
The decision was based on the results of a survey of debit card transaction costs, which is mandated by the Dodd-Frank Act, according to the Fed. Debit card fraud losses increased in 2013, compared to 2011.
"As in prior years, covered issuers' costs of authorizing, clearing, and settling debit card transactions, excluding issuer fraud losses, varied greatly across respondents in 2013, with the median issuer having an average ACS cost of 14.9 cents and the issuer at the 75th percentile having an average ACS cost of 42.2 cents," the Fed said in a release.
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Issuers with the highest debit card transaction volume generally had the lowest ACS costs per transaction as reflected in an overall average of 4.4 cents per transaction, down from five cents per transaction in 2011. Conversely, issuers with the smallest debit card programs generally had the highest ACS costs per transaction, the Fed wrote.
Debit card fraud losses to merchants, cardholders and issuers was $1.57 billion in 2013, with an average loss of approximately eight basis points as a share of transaction value, up slightly from 2011.
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