Regulatory Alerts2023-11-14 | 2023-24034Debit Card Interchange Fees and Routing
The Board of Governors of the Federal Reserve System proposes to update the debit card interchange fee cap under Regulation II based on mandatory survey data from large issuers. The proposal lowers the base component to 14.4 cents and the ad valorem component to 4.0 basis points while increasing the fraud-prevention adjustment to 1.3 cents. It also codifies a mechanism to adjust these fees every two years using the Board's biennial survey data to ensure fees remain proportional to issuer costs.
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