Federal Reserve Should Finalize Debit Card Fee Proposal, Say Merchants Payments Coalition

The Merchants Payments Coalition supports the Federal Reserve’s proposal to reduce debit card transaction fees to more fairly priced Payment & Card processing costs.

MPC It's an outdated practice whereby the merchant is expected to pay transaction fees for any debit card used as a channel is forwarded to the Reserve to hasten the finalization of the proposal to reduce debit card interchange fees between banks and merchants. In a letter to Federal Chairman Jerome H. Powell, the MPC would criticize banking attempts at making fees to remain outrageously high.

The set proposal put across by the Federal Reserve is to lower the interchange fee to 14.4 cents per transaction, in contrast with the present rate of 21 cents; reviews would be carried out every two years. It established this new fee structure to apply to financial institutions with an asset scale that exceeded around dollars 10 billion.

This MPC says that "the credit card reform has long been overdue to finally create a fair Payment Card ecosystem." The cap has drawn opposition from the American Bankers Association as it argued arbitrary because it does not reflect the cost of debit card processing.