The Federal Reserve said Thursday it is not planning to propose a change to the current interchange fee standard or fraud prevention adjustment.
The Fed made the decision based on the results of a survey of debit card transaction costs, which is mandated by the Dodd-Frank Act.
The Fed also reported that debit card fraud losses increased in 2013, compared to 2011.
“As in prior years, covered issuers' costs of authorizing, clearing, and settling (ACS) debit card transactions, excluding issuer fraud losses, varied greatly across respondents in 2013, with the median issuer having an average ACS cost of 14.9 cents and the issuer at the 75th percentile having an average ACS cost of 42.2 cents,” the Fed said in a release.
“Issuers with the highest debit card transaction volume generally had the lowest ACS costs per transaction as reflected in an overall average of 4.4 cents per transaction, down from 5 cents per transaction in 2011. Conversely, issuers with the smallest debit card programs generally had the highest ACS costs per transaction,” the release also said. The Fed also estimated that debit card fraud losses to merchants, cardholders and issuers was $1.57 billion in 2013, with an “average loss of approximately 8 basis points as a share of transaction value, up slightly from 2011.”
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