The U.S. Federal Reserve has offered up a proposal that will reap profits for retail. On Wednesday, they proposed slashing swipe fees, or the fees banks charge for debit transactions, by almost a third. The current cap on the swipe fees are set at 21 cents, and if this proposal is accepted, it will be dropped down to just 14.4 cents.
While this news has been met with approval and excitement from retailers, it has been met with just as much opposition from banks. In addition to the slashing of swipe fees, this proposal suggests other, less impactful fees to be dropped down as well.