Debit interchange exempt/non-exempt list released by the Fed
07/15/2011 04:45 pm
The Federal Reserve released its list of exempt and non-exempt financial institutions to facilitate compliance with the debit card interchange fee standards. The Fed is publishing two lists of institutions using data available to the board. The lists will help payment card networks and others determine which issuers qualify for the statutory exemption from interchange fee standards.
Financial institutions that are debit card issuer that, together with its affiliates, have assets of less than $10 billion. The lists were generated from December 31, 2010 data.
The non-exempt list includes Navy FCU of Virginia, State Employees CU of North Carolina and Pentagon FCU of Virginia, along with U.S. Central Bridge Corporate FCU, Western Bridge Corporate FCU and Members United Bridge Corporate FCU. The exempt list contains the rest of the credit unions in the country. The exempt financial institutions are exempt from the interchange fee standards under the statute that was released two weeks ago. The new rule sets debit interchange fees at 21 cents plus 5 basis points for fraud prevention. The Fed issued an interim final rule to allow institutions to charge an additional penny if they meet certain fraud prevention requirements.
The Fed staff are required to report by April 2012 whether there is a two-tiered system and the impact of the rule on small issuers’ interchange fee income and a more comprehensive report by April 2013. The 2013 report is to include information on whether there has been a change in debit interchange fee income for small issuers, whether merchants are discriminating against small issuers and the impact of exclusivity provisions.
To see the entire list of exempt/non-exempt financial institutions,