Up to date Oct. 25, 2023 2:26 pm ET
WASHINGTON—The Federal Reserve proposed reducing by about 30% the charges retailers pay to many banks when shoppers store with debit playing cards, setting off a combat with banks that oppose the modifications.
At current, retailers pay massive card issuers akin to JPMorgan Chase and Financial institution of America 21 cents plus 0.05% of the transaction quantity, which is the extent set by the Fed in 2011. The Fed can decrease the cap if it determines the prices for processing debit-card funds are declining, however it had by no means beforehand performed so.
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