Retailers Support Fed Move to Lower Debit Interchange Rate
- By [ Austen Jensen ]
- Washington, DC
- 10/24/2023
“Retailers welcome the Fed’s action’s today in proposing to lower the interchange rate on debit transactions from $0.22 to $0.144. These transactions cost card networks and the largest banks $0.039 yet they have been charging merchants almost 600% more per transaction. Today’s proposed rulemaking signals an end to these outrageous markups.
“As the rulemaking process unfolds, the retail industry will continue working with the Fed and will submit comments advocating that the rate should be set even lower than $0.144. The data overwhelmingly proves that the current rate needs to be lowered to more accurately reflect reasonable and proportional costs incurred by banks and card networks. We welcome the opportunity to advocate for a more sensible debit transaction interchange rate and support the Federal Reserve's biannual review and update to ensure the rate remains proportionate to actual costs to process these transactions.”
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RILA is the US trade association for leading retailers. We convene decision-makers, advocate for the industry, and promote operational excellence and innovation. Our aim is to elevate a dynamic industry by transforming the environment in which retailers operate.
RILA members include more than 200 retailers, product manufacturers, and service suppliers, which together account for more than $2.7 trillion in annual sales, millions of American jobs, and hundreds of thousands of stores, manufacturing facilities, and distribution centers domestically and abroad.
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Payments
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Public Policy
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Finance
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Supporting Free Markets and Fostering Innovation
