ARLINGTON, Va. – NAFCU has issued a statement saying it disagrees with a recent Federal Reserve report’s findings that the exemption for small debit card issuers from interchange fee standards is working as designed.
“NAFCU is not convinced by the Federal Reserve’s report on the impact of its interchange rule on small debit card issuers,” said CEO Fred Becker. “Our data shows that the median interchange fee, as well as the median fee as a percent of the total amount of a transaction, have decreased since the rule came into effect. We note that the Federal Reserve, for at least with respect to one part of the report, notes that ‘the results of the survey may not be representative of the experience of small issuers overall.’ Our member credit unions, contrary to what the Fed implies, have reported that the rule has caused them significant problems and challenges, and continues to be harmful.”
Becker said NAFCU is forecasting that credit unions and other small issuers will “experience a sizeable decrease in debit interchange revenue over time, which could ultimately lead to higher costs and fewer product choices for credit union members who use debit cards.”