NAFCU backs overturning district court interchange ruling
Oct. 21, 2013 – NAFCU and other amici today filed in favor of overturning a district court ruling invalidating the Federal Reserve Board’s debit interchange rule.
“NAFCU has been steadfast in its effort to preserve credit unions’ ability to receive income on card services, and that includes a reasonable return on interchange,” said Carrie Hunt, NAFCU's senior vice president of government affairs and general counsel. “The court's ruling on the Fed-approved debit fee cap and network non-exclusivity requirements would have a disastrous effect on credit unions' capacity to ensure their 96 million members receive the services they need.”
The Fed’s final rule limits debit interchange fees to 21 cents per transaction plus 1 cent for fraud costs. This cap applies to debit card issuers having more than $10 billion in assets. The rule also sets prohibitions against network exclusivity that apply to all card issuers.
The Fed’s regulation on debit interchange will remain in effect throughout the appeal process. Merchants have until Nov. 20 to file their response to the Fed, and the Fed will have until Dec. 4 to respond to that.