Many of the nation’s largest banks have announced they will eliminate their popular debit programs that allow consumers to earn points as they would for credit card debt on rewards accounts. But now one says it would reopen them if a proposed federal regulation is put on hold.
JPMorgam Chase CEO for commercial banking Todd Maclin recently announced that if a Federal Reserve Board rule that would limit certain transaction fees is delayed, the New York-based bank would restart its debit card rewards programs, according to a report from the Arizona Republic.
Speaking at a conference in Phoenix, Maclin said all current debit rewards and benefits would be reinstated without question, the report said. Currently, the bank plans to halt these offerings on July 19.
The Federal Reserve’s proposal would have placed a limit of 12 cents on debit transaction fees charged to retailers by banks. Currently, financial institutions charge an average of about 44 cents for each debit purchase made across the country. But the central bank has already delayed its original implementation plans for the new rule on the basis that it has received thousands of public comments regarding the change.