Federal Reserve proposes changes to debit card interchange cap

The Federal Reserve issued a proposal Wednesday to make significant changes to the current debit card interchange cap.

CUNA strongly opposes any changes—legislative or regulatory—to the current interchange system.

Specifically, the proposal would:

  • Reduce the base component of the interchange fee cap to 14.4 cents (down from the current 21 cents), reduce the ad valorem component to 4.0 basis points (down from the current 5.0 basis points), and increase the fraud-prevention adjustment to 1.3 cents (up from the current one cent).
  • Update all three components of the interchange fee cap (base, ad valorum, and fraud prevention) every other year going forward by directly linking the components to data from the Board’s biennial survey of large debit card issuers starting in 2025, without public comment.


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