The 12 members of the Federal Advisory Council (FAC) are representatives from the banking sector who consult and advise the Board on all issues within the Board’s jurisdiction. The FAC recently submitted their official comment on the Federal Reserve’s proposal for new debit card interchange fees. Below is an excerpt from the FAC’s response:
“On February 4, 2011, the Federal Advisory Council met with the Board of Governors to discuss the Board’s proposed rule on debit-card interchange fees, routing, and payment-network exclusivity (Docket R-1404). The council provided written views, which are provided below. What is the Council’s view of the Federal Reserve Board’s proposal concerning debit card interchange fees, routing, and network exclusivity?
We have gathered unprecedented feedback from across the financial services industry and there is broad and deep opposition to the Federal Reserve’s proposed approach, which we strongly believe misinterprets and misapplies the Durbin Amendment. If enacted as proposed, the results would be extremely damaging to consumers, the U.S. payment systems and financial institutions of all sizes. Given the serious flaws in the Proposed Rule, we urge the Board to withdraw the current proposal, fundamentally revise its overly narrow interpretation of the Durbin Amendment and issue a new proposed rule that takes fully into account both the requirements of law and the significant consumer and economic considerations at stake.”
Click here to read the FAC’s full official comment on the Fed’s debit proposal.
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