The Federal Reserve has contacted CUNA and NAFCU as part of its preliminary work to come up with an interchange cap for debit cards issued by financial institutions with more than $10 billion in assets.
The recent financial regulatory reform law required the Fed to establish such a cap, a move credit unions viscerally opposed. Only three credit unions have assets of more than $10 billion, but credit unions worry that any cap on debit interchange will effectively cut their debit card income.
According to executives with CUNA and NAFCU, Federal Reserve officials have contacted the associations about the issue. NAFCU reports they have discussed their process for establishing a cap on debit card interchange which appears to be in its preliminary fact finding stage.
The Federal Reserve has not yet commented on the development of the cap.
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