Payments/Credit/Debit

The Federal Reserve did not survey small debit card issuers about their costs of issuing before it issued rules that will directly impact their income from debit card interchange.

NAFCU CEO Fred Becker said credit union members would be those most hurt by the Federal Reserve's proposed rule capping debit card interchange at 12 cents.

First Data's initial statement on the Federal Reserve's proposed debit interchange rule did not mention establishing a debit interchange schedule for small debit card issuers.

Contrary to the assurances of Illinois Senator Richard Durbin (D), the interchange cap which flows from the amendment that bears his name will reduce credit union income from debit card interchange.

The Board of Governors of the Federal Reserve today proposed a rule which would cap debit card interchange at no more than 12 cents per transaction.

The impact of the Federal Reserve's proposed rule on debit interchange could be a "drastic" cut to CU debit card income, according to CUNA CEO Bill Cheney.