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IPA Payments Pod

Feb 8, 2021

The big banks are asking the Federal Reserve to re-examine what companies should be subject to interchange caps on debit transactions imposed by the Durbin Amendment to the Dodd Frank Wall Street Reform and Consumer Protection Act.

In a letter and meeting with the Fed, the Clearing House, a trade association and payments company owned by the biggest U.S. banks asked the Fed to examine whether certain business arrangements used by Fintechs mean that they should be subjects to the same interchange caps as banks with more than $10 billion in assets.

If the Fed were to apply the Clearing House’s recommendations, it could affect the business model for Fintechs and for many prepaid programs that are designed to help low-income Americans.