Fed Report: Debit Growth Slows As Fraud Losses Rise And Cost Gaps Widen

WASHINGTON—Debit card usage continued to grow in 2023, though at a slower pace than in prior years, according to a new Federal Reserve report that highlights rising fraud exposure, shifting cost burdens, and persistent disparities between large and small financial institutions.

Payment card networks processed more than 100 billion debit and prepaid transactions valued at $4.7 trillion, with growth moderating as post-pandemic spending patterns normalized.

Interchange fee revenue across all debit and general-use prepaid transactions totaled $34.1 billion in 2023, up modestly from 2021. For transactions subject to Regulation II, average interchange fees remained largely unchanged from prior years, while exempt transactions continued to generate materially higher fees. Network fees, however, increased to nearly $13 billion, with a growing share of those costs borne by acquirers and merchants rather than issuers—a long-running trend the Fed says has continued since the regulation took effect..

Fraud losses edged higher overall and continued to shift away from issuers toward merchants and consumers. Total fraud losses across covered issuers reached 17.6 basis points of transaction value in 2023, nearly double levels seen a decade earlier. Merchants absorbed about half of all fraud losses, while issuers’ share fell to just over 28%. Cardholders’ exposure rose sharply, accounting for more than one-fifth of fraud losses, driven largely by growth in card-not-present and prepaid transactions, the report shows..

Read more at CU Today

Consumers Often Distrust Mainstream Finance

Consumers with Low Incomes Often Distrust Mainstream Financial Services. New Data Shed Light on the Reasons

Financial inclusion matters for both individuals and the economy. Having safe and sustainable access to financial services and products can increase households’ financial stability and wealth. This leads to more transactions across the economy, enhancing real (i.e., inflation-adjusted) growth.

One key measure of financial inclusion is the unbanked rate, or the share of households without a checking or savings account. Though the unbanked rate has declined in recent years, the unbanked rate among households with low incomes has remained persistently higher than the national average.

According to a biennial survey conducted by the Federal Deposit Insurance Corporation (FDIC), the overall unbanked rate fell from 7.6 percent in 2009 to 4.2 percent in 2023. But among households with annual incomes below $75,000, the unbanked rate fell from 10.4 percent to 5.4 percent (higher than the national average).

Read more at URBAN.org

Federal Reserve Board publishes its biennial report on debit card transactions, which summarizes information collected from large debit card issuers and payment card networks

2023 Interchange Fee Revenue, Covered Issuer Costs, and Covered Issuer and Merchant Fraud Losses Related to Debit Card Transactions

The Federal Reserve System is the central bank of the United States. It performs five key functions to promote the effective operation of the U.S. economy and, more generally, the public interest.

■ conducts the nation’s monetary policy to promote maximum employment and stable prices in the U.S. economy;

■ promotes the stability of the financial system and seeks to minimize and contain systemic risks through active monitoring and engagement in the U.S. and abroad;

■ promotes the safety and soundness of individual financial institutions and monitors their impact on the financial system as a whole;

■ fosters payment and settlement system safety and efficiency through services to the banking industry and U.S. government that facilitate U.S.-dollar transactions and payments; and

■ promotes consumer protection and community development through consumer-focused supervision and examination, research and analysis of emerging consumer issues and trends, community economic development activities, and administration of consumer laws and regulations.

Read the REPORT at the Federal Reserve Board 

5 Critical Payments Challenges for Banks in 2026. Keep Your Eye on PayPal

The payments battleground will only grow more intense in 2026 as the economics become increasingly complex, technologies morph, and long-held assumptions fall by the wayside.

Every bank and credit union will have a stake in this revolution — and they can’t afford to sit it out.

Fintechs are getting smarter about payments every day.

Need to Know:

• A storm of payments issues confront banks and credit unions going into 2026, from the growing appeal of digital wallets to agentic payments and rising competition.
• The intersection of payments and lending is changing the game and now nonbanks are seeking charters, the latest being PayPal.
• A major pivot: Debit cards, once a simple utility product, now represent a competitive threat to other payment vehicles.

Read more at The Financial Brand

Have a tax law question?

Our #IRS Interactive Tax Assistant has answers.

Watch this short video to learn more:

https://youtu.be/y6HkaBkdKdU

Jose L. Santiago

Public Affairs Specialist

Tax Outreach, Partnership and Education

Email: jose.l.santiago@irs.gov

Treasury Secretary Bessent calls for looser regulations for the US financial system

WASHINGTON (AP) — U.S. Treasury Secretary Scott Bessent is proposing to overhaul a regulatory panel that monitors the nation's financial stability, by advocating for looser regulations.

The Financial Stability Oversight Council, a U.S. body created in the wake of the 2008 global financial crisis, monitors risks to the financial system and coordinates regulators' approaches to overseeing the U.S. financial system. In a letter released by Bessent Thursday, he said “too often in the past, efforts to safeguard the financial system have resulted in burdensome and often duplicative regulations."

“Our administration is changing that approach," said Bessent, who chairs the committee, which is meeting on Thursday.

Bessent said the council will begin to "consider where aspects of the U.S. financial regulatory framework impose undue burdens and where they harm economic growth, thereby undermining financial stability.”

Read more at Associated Press

Best ways to send money to Africa in 2026

Sending money to Africa has become easier over the past decade, but the cost difference between services remains significant. The cheapest option for your specific transfer depends on where you’re sending from, where the money is going, how much you’re moving, and how quickly it needs to arrive.

Understanding how these services make money helps you avoid overpaying. Some charge upfront fees with transparent exchange rates. Others advertise zero fees but mark up the exchange rate. The total amount your recipient receives matters more than how the costs are structured.

This guide breaks down the services by category and explains what to look for when comparing options.

These companies operate primarily online and through mobile apps. They tend to have lower costs than traditional services because they don’t maintain physical locations.

Read more at TechNext24

Retailer Groups Urge Federal Reserve to Adopt Swipe Fee Decrease

Multiple associations argue there is no need to wait for court action or for new data.

WASHINGTON, D.C. — Retailer groups and trade associations are urging the Federal Reserve to turn down banks' latest request that the agency drop a proposal to reduce the billions of dollars in swipe fees big banks charge to process debit card transactions.

Last week the American Bankers Association (ABA) and other banking groups asked the Fed to withdraw its proposal to reduce the 2011 regulated rate for debit card swipe fees "while it awaits further clarity from the courts and considers more current data." The request was at least the sixth attempt by banks to delay the proposal since it was released in 2023.

The Merchants Payments Coalition (MPC) encouraged the Fed to finally adopt the reduction instead, citing there is no need to wait for court action or for new data.

Read more at Convenience Store News34

Understanding and Influencing Today’s Financial Consumer: How AI Is Rewriting Insight, Visibility and Trust

Financial institutions face a fast-changing, emotionally complex consumer landscape. Hakan Yurdakal explains how AI transforms insight, visibility, and trust by uncovering behavioural drivers, monitoring real-time sentiment, and optimising product representation for generative AI channels. Combining intelligence with integrity, AI empowers firms to deliver personalised, transparent, and human-centred financial experiences.

In an era of rapid digital acceleration, financial institutions face an extremely complex field of consumers. Customers want faster service, personalised experiences and transparent communication, yet remain concerned about data use, privacy and the role technology plays in financial decision-making.

For banks, insurers, investment firms and fintechs, the challenge is no longer simply adopting technology but ensuring it strengthens trust and human understanding.

Artificial intelligence (AI) has become central to this transition. While often associated with automation or risk modelling, AI is now emerging as a powerful engine for consumer understanding.

Read more at The European Business Review 

Brokers and Funders – Are You Ready for Changes to California Law Effective January 1, 2026? Robert F. Gage and Kate Fisher , Hudson Cook LLP

California has a new law, California S.B. 362, impacting how brokers and funders communicate with merchants starting on January 1, 2026. The new law adds provisions to California’s Commercial Financing Disclosures Law (“CFDL”) which became effective in 2023 and established the first law requiring commercial financers and brokers (described in the CFDL as “providers”) to provide cost-of-funding disclosures to applicants. Here is an overview of what you need to know:

Don’t Say “Factor Rate”

Under S.B. 362, commercial financing providers are not allowed to use the term “rate” in a manner that is likely to deceive a recipient. A “recipient” is generally a person who receives an offer of commercial financing of $500,000 or less. The preamble to the new law (which is not part of the law but informs how the regulator will approach enforcement) gives the following example of what California means by likely to deceive:

Describing the price of credit as “X% fee rate” or “Y% factor rate,” particularly when those “rates” diverge materially from the APR.

Read more at deBanked

Walmart makes quiet in-store changes to meet cutomer needs

The retail giant has certain advantages over rivals, including Target.

Key Points

• Retailers face challenges balancing inventory levels and predicting holiday season demand.
• Walmart leverages advanced AI and IoT for real-time, optimized inventory and supply chain decisions.
• Most large retailers are cautious, but Walmart’s tech and scale provide major competitive advantages.

Retailers have to balance spending too much money on inventory that doesn’t sell and not having the items that their customers want.

Back when I was running a large toy store, Time Machine Hobby in Manchester, Conn., we had to make about half of our holiday season inventory decisions in the summer. Brands like Lego and the many puzzle lines we carried required early orders and large financial commitments.

Read more at The Street

This map compares average mortgage rates by state

One of the most stressful parts of buying or refinancing a home is locking in a mortgage rate. Home loan rates vary depending on various factors, including your credit score, down payment size, and — this is a big one — where you live.

Mortgage rates by state

At the time of publication, the national average 30-year fixed-rate mortgage sits at 6.21%, according to Freddie Mac. That figure could be slightly higher or lower, though. It depends on which state you live in and whether you want to buy a house or refinance your mortgage.

Here’s a look at the current average mortgage rates by state for 30-year fixed-rate home loans, according to data from Zillow. At the time of writing, the average rate ranged from 5.99% (North Dakota) to 6.41% (Delaware).

Mortgage refinance rates

Refinance rates by state also vary, and they’re often (but not always) a bit higher than mortgage rates on home purchases.

Read more at YAHOO FINANCE

Oracle just made a power move Wall Street can’t ignore

A quiet shift in Oracle’s strategy is changing how investors see its future.

Key Points

• Oracle quietly deepens its role in a sensitive corner of U.S. tech infrastructure.
• A flagship AI build-out hits turbulence, putting a spotlight on how the company is funding its ambitions.
• Big strategic opportunities are emerging alongside higher financial and political stakes.

Oracle is now at the center of two very different dramas in Washington. One is about saving TikTok from a U.S. ban, and the other is about how far the software giant can go with its balance sheet to pay for the AI boom.

On one hand, ByteDance, TikTok’s Chinese parent company, has finally agreed to a long-awaited deal, Reuters reported. The agreement gives a new joint venture, comprised of American and global investors, control of the app’s U.S. operations.

Oracle will be in charge of security and the cloud.

Read more at The Street

Contact Chuck.Sockol@mcrc.biz to discuss your recovery needs

These 4 Banks Are Still Offering Close to 5% (But Not for Long)

These financial institutions are still paying close to 5% on savings accounts, but this window of opportunity is rapidly closing.

If you’ve been enjoying the golden age of high-interest savings, consider this your final boarding call.

The Federal Reserve concluded its final meeting of 2025 on Dec. 10 with another 0.25% rate cut, bringing the target range down to 3.5% to 3.75%.

This marks the third cut of the year, and banks are already beginning to slash their own rates in response.

While the Fed does not directly set the interest rates you see in your savings account, its benchmark federal funds rate serves as the primary influence for most financial institutions. When the Fed moves, commercial banks usually follow suit within days.

Read more at Money Talk News

Why Do All Banks Look and Feel the Same?

Jim explores why so many financial institutions struggle to differentiate and how to learn from brands unafraid to take bold stands.

In this video, Jim Marous broadcasts from Miami’s Wynwood Arts District — one of the most vibrant creative hubs in the world. Using the evolution of Wynwood as a backdrop, Jim explores why so many financial institutions struggle to differentiate, why creativity has become a strategic imperative, and how banks can learn from brands and artists unafraid to take bold, distinctive stands.

From the history of Wynwood’s transformation to the sameness of today’s mobile banking experiences, Jim breaks down the hidden cost of playing it safe and what it will take for banks and credit unions to stand out in a crowded, commoditized marketplace.

If you want your organization to compete on something other than price, convenience, or compliance, this episode is a wake-up call — and a path forward.

Read more at The Financial Brand

We advise financial technology companies at the

start-up, product development, and product evolution stages. PS

Why ‘very large’ tax refunds are coming in 2026, according to officials

Thanks to a number of changes to the tax code under the One Big Beautiful Bill, Trump administration officials are projecting Americans will enjoy the largest tax refund ever in 2026.

Ways and Means Committee Chairman Rep. Jason Smith (R-MO) said in an early December memo citing an analysis by financial services company Piper Sandler that 2026 was shaping up to be “the largest tax refund season.”

“Because of the changes within the Big Beautiful Bill most taxpayers should expect to see a larger refund in 2025, but how much they receive will really depend on the specifics of their tax situation,” Adam Brewer, tax attorney with AB Tax Law, told Nexstar.

While many changes are set to take place in 2026, affecting the following year’s returns, there are notable changes for 2025, including: a higher standard deduction, a higher cap on state and local tax (SALT) deductions, an additional $6,000 deduction for seniors, no tax on tips, no tax on overtime and no tax on car loan interest, among others.

Read more at The Hill

Small business tax prep: These tools can save you time and money

Thanks to small biz software and business bank accounts, tax prep can be easy.

Once the holidays subside, there’s another big day you’ll want to circle on your calendar: tax day. If this will be your first time filing your taxes as a business owner — whether it’s your full-time job or a side hustle — there are a few things you’ll want to do in order to prepare.

Know your deadline

Your tax filing deadline can depend on your business structure and how its taxed. Here are the deadlines to be aware of:

Sole proprietorships and single-member LLCs: Apr. 15, 2026

• C corporations: Apr. 15, 2026
• S corporations: Mar. 16, 2026
• Partnerships: Mar. 16, 2026

Read more at CNBC

Watch Your Business Skyrocket.

More Visibility. More Customers. More Loans J

Look, This Isn't Over: First Trial Test for Debit-Card Overdraft Fees

Law firm Lieff Cabraser will square off against Wells Fargo's lawyers in federal court Monday to try the claim that the bank unfairly processed debit card transactions so as to maximize overdraft fees.

SAN FRANCISCO — That banks routinely process their customers' debit card purchases to maximize overdraft fees is an allegation that's sure to make a juror's blood boil.

But it will be up to U.S. District Judge William Alsup to decide a California class action accusing Wells Fargo of the practice. The bank squares off in a bench trial Monday against lawyers from Lieff Cabraser Heimann & Bernstein, and plaintiff damages estimates top $300 million.

Read more at LAW.COM

Online Payday Loan Market Is Booming So Rapidly | Major Giants Bad Credit Loans, Cash USA

According to HTF Market Intelligence, the Global Online Payday Loan market to witness a CAGR of 14.09% during the forecast period (2025-2030). The Latest Released Online Payday Loan Market Research assesses the future growth potential of the Online Payday Loan market and provides information and useful statistics on market structure and size.

This report aims to provide market intelligence and strategic insights to help decision-makers make sound investment decisions and identify potential gaps and growth opportunities. Additionally, the report identifies and analyses the changing dynamics and emerging trends along with the key drivers, challenges, opportunities and constraints in the Online Payday Loan market. The Online Payday Loan market size is estimated to increase by USD at a CAGR of 14.09% by 2030. The report includes historic market data from 2025 to 2030. The Current market value is pegged at USD .

The Major Players Covered in this Report: Clear View Loans (United States), Bad Credit Loans (United States), Cash USA (United States), Personal Loans (United States), Check Into Cash (United States), Cash Net USA (United States), Advance America (United States), Speedy Cash (United States), Ace

Read more at OPENPR

US introduces new bill to fix tax loopholes in crypto

A new discussion draft proposes broad updates to US crypto taxation,

Crypto regulations are still catching up to the industry's pace. For retail players and small businesses, they remain complex, inconsistent, and often unclear.

Both sides of Congress are trying to improve upon the existing regulations. 

Now, a new bipartisan proposal is aiming to simplify and modernize how the United States taxes digital assets. 

The draft bill seeks to amend the Internal Revenue Code of 1986 to create a clearer, more equitable system for crypto users and businesses.

Read more at The Street

12 Senior‑Friendly Financial Tools Gaining Popularity This Winter

Winter is a season when financial stress tends to rise, especially for seniors living on fixed incomes. Heating bills climb, holiday spending adds pressure, and unexpected winter repairs can strain even the most careful budget. This year, more older adults are turning to simple, senior‑friendly financial tools to stay organized and avoid unnecessary costs. These tools are designed to make money management easier without requiring advanced tech skills. The trend is growing quickly as seniors look for ways to stay in control during the coldest months.

1. Budgeting Apps With Large Text and Simple Layouts

Many seniors are discovering budgeting apps built with accessibility in mind, offering large text, clean layouts, and easy navigation. These apps help retirees track spending, set limits, and avoid overspending during winter’s most expensive weeks. Seniors appreciate that they don’t need to be tech experts to use them effectively. The simplicity makes budgeting feel less overwhelming and more empowering. These apps are becoming a go‑to tool for older adults who want clarity without complexity.

Read more at SAVING ADVICE

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