WASHINGTON, D.C. — There is more time to comment on proposed changes to debit card swipe fees.
The Federal Reserve Board announced on Jan. 22 that it will extend the public comment period on its interchange fee proposal to May 12. The additional time will allow the public more time to analyze the proposal and prepare their comments, according to the Board.
Comments on the proposal were originally due by Feb. 12.
[Read more: Trade Groups & Companies Unite in Call for Swipe Fee Changes]
The Board also published additional data related to the interchange fee cap in order to provide the public with additional information as they consider the proposal. The data is available here on the Federal Reserve website.
In October 2023, the Federal Reserve Board of Governors voted to open up proposed revisions to Regulation II's Interchange Fee Cap to a 90-day public comment period upon the proposal's publication in the Federal Register.
If adopted, the base component cap would decrease to 14.4 cents, the ad valorem component would decrease to 4 basis points, and the fraud-prevention adjustment would increase to 1.3 cents per transaction. With the three components taken into account, the maximum interchange fee for a $50 debit card transaction will be 17.70 cents, down from the current value of 24.50 cents for the same transaction.
Numerous retail groups, including the National Retail Federation (NRF), the Retail Industry Leaders Association and the Merchants Payments Coalition, applauded the proposal but raised concerns that the revisions do not go far enough, as Convenience Store News previously reported.
"This is a significant reduction that will save money for retailers and their customers, and we welcome the progress that has been made," said NRF Chief Administrative Officer and General Counsel Stephanie Martz. "Nonetheless, it still doesn't get to the 'reasonable' level Congress sought and it isn't proportional to banks' falling costs."