Fed to Weigh Debit-Card ‘Swipe’ Fee at Dec. 16 Meeting
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The Federal Reserve Board will meet Dec. 16 to weigh a proposed cap of debit-card transaction fees that could cut card-issuer profits and benefit retailers, the Fed announced today.
The Fed is writing rules for debit-card transaction fees under a provision of Dodd-Frank, the financial-regulation overhaul enacted in July. The so-called Durbin amendment requires that interchange fees -- what a merchant pays to the bank that issues a customer’s debit card -- be “reasonable and proportional to the cost incurred by the issuer.”