FMI, Coalition Call on Federal Reserve Again to Move Forward with Debit Card Rulemaking

A rlington, VA - FMI - The Food Industry Association joined fellow merchant industry organizations representing main street businesses around the country in urging the Federal Reserve to take immediate action to finalize the pending debit card swipe fee reform rule.

The Federal Reserve's final debit regulated rate rulemaking has been pending at the agency for well over a year. FMI has led the charge for debit card swipe fee reform for decades. FMI championed the reform which was enacted in 2010. The debit regulated rate was initially set by the Fed in 2011 and has not been modified until this rulemaking. FMI filed a joint petition in December 2022 to establish this rulemaking and filed comments on the proposed rule in May 2024.

"Grocery retailers, our customers and the American economy are long overdue for debit card swipe fee reform. These fees are unreasonably high. The 2010 statute required review and adjustments to the fees that have never been made. The Federal Reserve is obligated to follow the law, finalize the rule and give the American people and main street businesses a break on these fees," said Jennifer Hatcher, FMI's Chief Public Policy Officer.

The merchant letter was initiated in response to a recent letter sent to the Federal Reserve by financial industry organizations calling for the abandonment of Regulation II rulemaking, the federal law that governs debit card swipe fee known as the regulated rate.

"The Federal Reserve needs to do its job, finalize the rule and give American consumers and main street businesses some relief on these fees. Never adjusting debit fees is akin to never adjusting rush hour toll roads and cutting off all other roadways drivers could use. FMI adamantly opposes any move to abandon the critical Regulation II rulemaking," Hatcher continued.

The merchant letter spearheaded by the Merchants Payments Coalition, which FMI co-leads, is available here.