Debit Card Rule Will Harm Community Bank Customers

People who use debit cards issued by community banks will face higher costs and increased restrictions if a proposed Federal Reserve regulation goes into effect, according to a new survey of members of the Independent Community Bankers of America (ICBA).

The proposed Federal Reserve rule would implement the Durbin amendment of the Dodd-Frank Wall Street Reform and Consumer Protection Act. That amendment limits interchange fees to the tune of about $12 billion a year.

That means issuers will raise other fees, and impose new charges, to recoup the losses. An end to "free checking" is among the likely changes.



Survey: Fed Debit Card Rule Will Harm Community Bank Customers - pymnts.com