Fed faces mounting pushback on interchange fee proposal

The Federal Reserve’s proposed changes to regulations on interchange fee caps have received pushback from the financial sector and sparked disagreement among Fed Board governors. The Fed extended the comment period by 90 days, until May 12, in response to industry concerns about needing more time to evaluate the rule’s implications. Comments have continued to roll in from banks, credit unions, legislators, merchants and non-profit organizations expressing mostly opposition to the proposal.