Federal Reserve to Consider Lowering Interchange Fee Cap
Posted: Oct 25 2023
The Federal Reserve has announced a meeting scheduled for Oct. 25 with just one topic on their agenda, “Proposed revisions to the Board’s debit interchange fee cap.” Retailers have been lobbying Congress for years to reduce the amount they pay for debit and credit card transactions, and it looks like they have found a receptive audience with the Federal Reserve.
The Fed has not publicly commented on any specifics of the proposal however, the Wall Street Journal cited a source that the proposal would lower the cap. Following the meeting, the WSJ report says, the Fed would launch a public comment period and would then need a final vote by the Fed’s Board of Governors before going into effect. It is expected the proposal will receive intense lobbying during the comment period from the industry as well merchants.