Fed Hikes Debit Cap

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WASHINGTON – The Federal Reserve has agreed to concerns by banks and credit unions and will vote this afternoon on a proposed cap on debit fees that is higher than the December proposal and will include fraud costs.

The proposal being voted by the Fed’s Board of Governors later this afternoon will set the cap at 21 cents per transaction, and will allow issuers to add 5 basis points of fraud-related costs.

 

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