Fed's Interchange Proposal Threatens U.S. Banks' Fee Income

S&P Global Market Intelligence spoke with Kristen Larson about the U.S. Federal Reserve's proposed plan to limit banks' debit card interchange fee income. 

"We can expect any reduction to debit card interchange to further reduce the availability of free checking products and access to debit cards," Ms. Larson said . "With these reductions to debit card interchange fees and attacks on many other deposit account fees under the Biden Administration's 'junk fee' agenda, banks will transition free checking accounts to accounts that charge monthly maintenance fees."

Ms. Larson, a former in-house counsel for national banks, is a member of Ballard Spahr's Consumer Financial Services and Fintech and Payment Solutions groups. 

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