The NBA, the Nebraska Independent Community Bankers and the Nebraska Credit Union League sent a letter to Kansas City Federal Reserve President Jeff Schmid expressing opposition to the Federal Reserve System’s proposed rule to tighten debit card price caps in Regulation II.
The organizations raised concerns about the potential impact on consumers, noting that it would likely increase expenses for consumers, with no assurance that merchants will reciprocate by lowering their prices. Price caps have led to unequal and disproportionate access and inclusion impacts, particularly affecting economically disadvantaged or marginalized communities and individuals in or retired from military service. The proposed rule is likely to worsen the negative consequences already present in the existing regulation. “The proposed rule will result in many banks and credit unions having to increase consumer fees for checking accounts. The proposal will also lead to more consolidations as financial institutions approaching $10 billion in assets will incur millions of dollars in reduced first-year revenues,” the organizations said.
Read the Letter