The Fed's proposal to cut debit interchange fees for issuers with more than $10 billion in assets would significantly impact community banks, writes Alicia Marrone, executive vice president at ICBA Payments. She argues that a third of issuers wouldn't be able to cover the costs, resulting in fewer affordable options, and that small banks would have a much harder time combatting fraud.
While ICBA is pushing the Fed to withdraw the proposal, Marrone advises banks to "prepare for the worst," steering them toward ICBA Payments' new protection plan for limiting exposure to fraud losses.
Banks can also review the results of our most recent quarterly survey to learn some of the actions other institutions are considering in anticipation of the proposed rule becoming final.
Do you think this rule would inhibit your fraud-prevention efforts? What measures are you considering to offset any lost revenues? Are you considering changing, limiting, or cutting any services?
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Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi
Arlington, VA
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