CUNA News
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • Credit Union Magazine
    • Buyers' Guide
    • Digital Edition
    • Credit Union Hero
    • Credit Union Rock Star
    • Subscribe
    • Advertise
    • Contact
  • Advertise
  • Topics
    • Community Service
    • Compliance
    • Credit Union Hero
    • Credit Union Rock Star
    • Credit Union System
    • Directors
    • Human Resources
    • Leadership
    • Lending
    • Marketing
    • Operations
    • Policy & Issues
    • Sales & Service
    • Technology
  • Awards
    • Nominate Credit Union Hero
    • Nominate Credit Union Rock Star
  • Podcasts
  • Videos
  • Jobs
  • Contact

News

Home » Fed should resist re-opening debit regulation, Durbin changes
Policy & Issues

Fed should resist re-opening debit regulation, Durbin changes

February 2, 2022
instand issuance

Attempts to tighten Durbin Amendment regulations would make it increasingly difficult for financial institutions to provide robust core banking services, CUNA and other organizations wrote to the Federal Reserve this week. The letter was sent in response to the Fed’s recent proposal to re-open Regulation II, which covers debit card interchange fees and routing.

“We urge the Board to reconsider its recent proposal to reopen Regulation II and to resist requests from retailers for further changes that would increase the regulatory burden associated with the Durbin Amendment to the Dodd-Frank Act,” the letter reads.

The Durbin Amendment requires the Board to set an interchange cap that is reasonable and proportional to the costs incurred by issuers with respect to debit card transactions.

The organizations note capped interchange fee did not cover the average per-transaction ACS costs (including issuer fraud losses) for 21% of covered issuers, according to the latest debit card cost report released in May 2019.

Most recently, the Board’s Debit Card Issuer Cost Study found that financial institutions with less than $10 billion in assets) experienced a 21% decrease in per-transaction debit card revenue from 2011 to 2019.

“The law’s impacts have been most pronounced for those consumers in need of feature-rich, low-cost basic banking services and that these social costs are not captured in the relevant statistics,” the letter reads.

The organizations also request the Fed report to Congress a conclusion that the Durbin Amendment has “failed to achieve its stated goals, and that the Board recommend its speedy repeal.”

Credit Union Magazine: Rock Stars 2023

Rock Stars 2023

Credit Union Rock Stars are outstanding credit union professionals and directors from a wide range of disciplines who inspire and innovate to advance the missions of their credit unions. The 25 members of the 11th class of Rock Stars were selected for their exceptional creativity, innovation, and passion.
Digital Edition •  Subscribe

Trending

  • Meet the 2023 Credit Union Rock Stars

  • Senate Banking Committee passes cannabis banking bill

  • Senate committee to mark up SAFER Banking Act this week

Polls

Do you plan to use the FedNow instant payment service?

View Results
More

Champion for the Credit Union Movement

Credit Union National Association is the most influential financial services trade association and the only national association that advocates on behalf of all of America's credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.

More CUNA

  • Membership
  • Contact Us
  • Careers

Resources for

  • Credit Union Advocates
  • Leagues
  • Press
  • Providers

Our Affiliates

  • American Association of Credit Union Leagues (AACUL)
  • Credit Union Awareness
  • Credit Union House
  • CUNA Strategic Services
  • National Credit Union Foundation
GET CUNA UPDATES
© 2023 Credit Union National Association | ADA Compliance Notice & Legal
Email Us