Payments

Fed proposes decreasing debit card swipe fees

Photo: Adobe Stock

November 1, 2023

The Federal Reserve is throwing its support behind lowering the swipe fees bank charge retailers for debit card transactions.

The move would impact credit card companies including American Express, Visa and Mastercard and big banks that issue credit cards, according to a Yahoo Finance report.

The fees are paid by c-stores, retailers, supermarkets, gas stations and online businesses when a consumer makes a purchase with a debit card.

But at least one Fed governor, Michelle Bowman, is not in favor and said consumers won't see savings as retailers won't pass down the fee decrease in terms of product price.

Those in favor want a 90-day comment period on the proposal.

The fee issue has long been a focus point for the retail industry. The Supreme Court has agreed to hear a case that would force the Fed to lower the swipe fees, according to Yahoo.