Stop the Corporate Megastore Bailout: Reject Reg II

The Federal Reserve has proposed a rule to lower the cap on debit card interchange fees, from approximately 21 cents to just 14.4 cents. The Regulation II rule threatens access to the affordable banking products and services that many families and small businesses have come to depend on.

Debit cards are one of the most accessible financial tools that allow consumers to make electronic payments, participate in the digital economy, and carry less cash. Debit card interchange fees support the goals of financial inclusion by allowing banks to offer consumers low-fee products and services like free checking accounts, as well as providing fraud prevention and protection benefits, and affordable banking programs.

We’ve seen firsthand the unfortunate ‘domino effect’ that policies like this have on American consumers and small businesses. When the Fed capped debit card interchange fees in 2011, cardholders lost rewards, banking services became less affordable to customers on the margin, and corporate megastores made even more money and chose not to pass their cost savings onto consumers. According to the Richmond Fed, 98% of retailers did not lower their prices.

Tell the Federal Reserve to stop the corporate megastore bailout and reject Reg II.