Fed Unveils Swipe-Fee Plan
The Federal Reserve on Wednesday unveiled a more moderate plan to curb the debit-card “interchange” fees banks charge retailers, proposing a base fee of 21 cents that’s far less restrictive than a draft proposal that outraged the banking industry.
The Fed proposal, being considered at a meeting Wednesday afternoon, gives banks and credit unions much more flexibility in how much they can charge merchants.
Interchange or “swipe” fees are what banks charge merchants every time a customer uses plastic to pay for a purchase; the consumer doesn’t pay them directly.