The Federal Reserve Board has proposed reducing debit interchange fees. Although the reduction would only technically apply to institutions over $10 billion in assets, the MBA believes all banks will be significantly impacted by this proposal (similar to the events following the original debit interchange limitations in Regulation II which was required by the Dodd-Frank Act). The base debit fee rate would be reduced by roughly 30% to 14.4 cents from 21 cents. Additionally, the ad valorem component would decrease from 5.0 basis points to 4.0 basis points and the fraud-prevention adjustment would increase from 1.0 cents to 1.3 cents.
Your responses to this survey will help us better articulate why this proposal is dangerous for the banking industry, our customers and our communities.