Letter from Consumer Reports and the Consumer Federation of America to the Federal Reserve Board on its proposed debit card interchange fees and routing rule. The groups’ letter points out that the proposal will promote competition, reduce costs for merchants, potentially encourage innovation, increase transparency and reduce market inefficiency.
However, CR and CFA caution that it is critical to carefully weigh these benefits against the possible impact on low and moderate income consumers and the prospect that it may result in a bifurcated banking system. The groups call on the Federal Reserve Board to find a balance that promotes competition, innovation, and efficiency in the debit card market while ensuring that all consumers, particularly those with low and moderate incomes, have access to affordable, high-quality financial services.