-
The Federal Reserve’s proposal to cap debit interchange fees at 12 cents per transaction has credit union CEOs facing larger issues than just how their own organizations may take the blow.
December 23
Re:
The comments thus far have indicated that financial institutions with less than $10 billion are excluded from the Fed's proposed debit card interchange rules. If that remains fact, how the ruling "truly" affects our issuers remains the question and concern.
We are waiting on an official response from the card associations and from the various networks (Star, NYCE, Pulse, etc.) concerning their support of a two-tiered pricing structure, if it remains as stated. Consumers have shown that debit is the card of choice, and that will not change.
An increase in debit card activation and use are now even more important for issuers. If merchants slow or eliminate the acceptance of checks, as is happening in other parts of the world, and now that the cost of cards for the majority of their traffic are much lower, then this will surely open up more transactions that just are not there today.
Ron Sylvia
PSCU Financial Services
