US Fed asks for feedback on lowering fee from large debit card issuers

By Ovunc Kutlu

ISTANBUL (AA) - The US Federal Reserve said Wednesday that its board is requesting comment on a proposal to lower the maximum interchange fee that a large debit card issuer can receive for a debit card transaction.

The proposal would also establish a regular process for updating the maximum amount every other year going forward, the Fed said in a statement.

The board first implemented a statutory requirement in 2011, setting an interchange fee cap for debit card issuers with $10 billion or more in assets, while the proposal would adjust the interchange fee cap to reflect changes in issuer costs since the rule first took effect.

If the proposal is accepted, the cap on an average-sized $50 debit card transaction would decline from 24.5 cents to 17.7 cents.

The Fed noted that the comment period will close 90 days after the proposal is published in the Federal Register.