Fed report: Debit card transaction fraud growing 

The Federal Reserve published its biennial report on debit card transactions, which summarizes information collected from Durbin-covered debit card issuers and payment card networks 

Scope: The report, required by law, provides data on interchange fees, issuer costs, and fraud losses related to debit card transactions performed in 2023.  

Fraud Findings: The Fed’s report finds that in 2023, across all transactions for covered issuers, fraud losses to all parties as a share of the transaction value were 17.6 basis points, or $17.63 per $10,000 in transaction value—a steady increase in fraud losses from 7.8 basis points in 2011. 

ICBA Advocacy:  

• ICBA and other groups earlier this month called on the Fed to release the 2023 debit card survey data, which was collected more than 19 months ago. 

• ICBA in July requested that the Fed and the Office of Management and Budget reduce this survey in the future from more than 260 data points to 100 key factors. 

• ICBA last year asked the Fed to adjust the threshold for how it defines high-volume issuers, which skews the data on covered community banks.    

• ICBA has also asked the Fed to study the fuller impact of the July 2023 routing changes, the role of Reg II in financial institution consolidation, and the roles of payment facilitators in merchant card acceptance.