Fed To Set Final Debit Rule
WASHINGTON – The Federal Reserve announced yesterday its board will meet next Wednesday to vote on a final rule implementing cuts in debit fees.
The meeting comes as the July 21 deadline for implementation, as set in last year’s Wall Street reform bill, is rapidly approaching, giving credit unions and banks less than a month to prepare for the final rule.
The final rule is expected to represent a compromise over a proposal issued for comment in December, which would set the cap at 12 cents per transaction. The final rule is widely expected to set a higher cap.
Credit unions and banks have waged a vicious lobby against the debit cuts, but failed to convince Congress earlier this month to delay the final rule.
The stakes are enormous, with credit unions and banks earning $20.5 billion last year in debit fees, an estimated $2.6 billion of it going to credit unions.