Fed Floats Deep Cuts to Debit-Card Swipe Charges

WASHINGTON—The Federal Reserve proposed decreasing by about 30% the charges retailers pay to many banks when shoppers store with debit playing cards, setting off a struggle with banks that oppose the adjustments. 

At current, retailers pay giant card issuers equivalent 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, but it surely had by no means beforehand accomplished so.