The Hill News

Today, the House Financial Services Committee will hold a hearing on the Federal Reserve’s proposed rule on interchange fees to review the implications and consequences of the interchange price cap amendment.

The fact is, the Draconian rules proposed by the Federal Reserve as price caps on debit card transactions will have dire consequences on credit unions â€" not-for-profit, member-owned financial institutions â€" and by extension, the 92 million Americans they serve. Unfortunately, the proposed rule fails to determine ‘reasonable and proportional’ interchange fees that would cover the full cost that credit unions incur when administering card programs, including fraud protection, data breach and support costs.

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