Fed Proposes Slashing ‘Swipe Fees’ in Move Expected to Fuel Battle Between Banks, Retailers

For the first time in a decade, the Federal Reserve has proposed changes to so-called swipe fees.

This illustration picture shows debit and credit cards arranged on a desk in Arlington, Va. on April 6, 2020. Olivier Douliery/AFP via Getty Images

The Federal Reserve unveiled a proposal to reduce “swipe fees” banks can charge merchants for processing debit card transactions, making it the largest reform of interchange fees in a decade.

Following a Federal Reserve Open Board meeting on Oct. 25, the U.S. central bank announced that it would recommend reducing debit interchange fees by close to a third, from 21 cents to 14.4 cents.