Interchange Fees

Recent Activity

In May 2021, the Federal Reserve proposed changes to Regulation II, which governs debit card interchange and network routing, that would require debit card issuers to enable two unaffiliated routing networks for card-not-present transactions. This regulatory action came as the North Dakota Retail Association and the North Dakota Petroleum Marketers Association joined in April to file a lawsuit against the Federal Reserve arguing that the Fed should enforce a lower cap on debit card interchange fees. In August 2021 NAFCU commented on the Regulation II proposal, opposing any changes to the current regulation and urging the Federal Reserve to withdraw the proposed rule. NAFCU also joined other financial services trade groups in a joint letter opposing the proposal. NAFCU continues to oppose additional price caps or other regulatory requirements that would hurt credit unions’ interchange income or reduce the availability of affordable products and services to credit union members.

In March 2020, NAFCU wrote to House and Senate leadership asking them to oppose any effort to extend interchange price caps when crafting another relief package in response to the Coronavirus after the National Restaurant Association floated capping interchange fees as a way to aid restaurants impacted by the pandemic.  No member of Congress has suggested additional interchange action as a pandemic response, but NAFCU is remaining vigilant.

In January 2017, language to repeal the entirety of the Durbin amendment on interchange was included in the reintroduced version of House Financial Services Chairman Jeb Hensarling's Financial CHOICE Act (H.R. 10). NAFCU strongly supported this provision, running op-eds in The Hill and Morning Consult, as well as encouraging NAFCU members to ask their members of Congress to support a Durbin amendment repeal via NAFCU’s Grassroots Action Center. Unfortunately, the provision was stripped before the House voted on final passage of the underlying measure in June 2017.