Today, the Federal Reserve will host an open board meeting to discuss the proposed over debit card swipe fee rules set to take effect next month.
The Federal Reserve will be live streaming its open board meeting as officials review the proposed debit card interchange fee rules that are slated to be enacted on July 21.
According to the Federal Reserve website, the board’s discussion agenda includes the proposal governing debit card interchange fees, the fraud prevention adjustment, routing and exclusivity restrictions and related matters.
Watch the Fed’s open board meeting live:
Background on Debit Swipe Fee Caps
Under the Durbin Amendment of the Dodd-Frank Financial Reform Act, the Fed wants to cap debit interchange fees to 7 to 12 cents per transaction. The new regulation is estimated to result in a $14-16 billion annual revenue loss for banks.
Since the rules were proposed in December 2010, there has backlash from political leaders and industry groups – mentioning the effects it would have on banks and, in turn, consumers. Free checking and debit card rewards have been eliminated by many banks in anticipation of tighter revenue streams. And recently, new debit card-related fees and charges are showing up.
The original deadline to finalize the debit card fee rules was April 21 and has since been postponed while the Fed received public comment on the details of the rules.
A bill by Senator Jon Tester to delay the rules by 15 months and conduct a study on its effects was defeated in Senate vote earlier this month.
The revealed topics suggest that the Fed may increase the fee limit to account for costs of fraud prevention and other bank operations. The exact details of the regulations are expected to be finalized today.