Letter to Chairmen Frank and Dodd urges exception from interchange fees
CHICAGO--(BUSINESS WIRE)--The Center for Financial Services Innovation (CFSI) issued a statement today on the specific language in the Financial Regulatory Reform bill that would regulateinterchange fees, recommending prepaid cards – including government benefits cards, general purpose prepaid cards, payroll cards – be exempt from the fee determination set by the Federal Reserve Board under this bill.
“This product continues to be an important tool to enable underbanked families to access the financial mainstream.”
In letters to Chairmen Frank and Dodd, CFSI states that the prepaid cards and, more importantly, the underbanked consumers using these products would be substantially harmed if the products were subject to interchange fee limits. The product structure, which makes them a viable option for consumers to use and for providers to offer, distinguishes them from other debit card products.
“An explicit fee limit on interchange will effectively prevent millions of low- and moderate-income households from accessing prepaid cards,” said Melissa Koide, CFSI Policy Director. “This product continues to be an important tool to enable underbanked families to access the financial mainstream.”
To read the complete letter, visit CFSI’s website: http://www.cfsinnovation.com/publications/article/440549
The Center for Financial Services Innovation is the nation’s leading authority on financial services for underbanked consumers. Since 2004, its programs have focused on informing, connecting, and investing – gathering enhanced intelligence, brokering and supporting productive industry relationships, and fostering best-in-class products and strategies. A non-profit affiliate of ShoreBank Corporation, CFSI works with leaders and innovators in the business, government and non-profit sectors to transform the financial services landscape. For more on CFSI, go towww.cfsinnovation.com.