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<div id="pastingspan1"><a href="https://nrf.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=nrf-seeks-to-lower-debit-card-swipe-fee-4080" target="_blank" rel="nofollow" target="_blank">The National Retail Federation</a> (NRF) recently requested the Federal Reserve lower the five-year-old cap for debit-card swipe fees. Mallory Duncan, senior vice president and general counsel for the NRF, said the swipe fees are unnecessary for small-ticket bills, like the ones at restaurants and the fee is a bit higher than what was originally intended.</div><div>&nbsp;</div><div>&#8220;In most cases, 24 cents per transaction represents a significant savings over the prior non-competitive pricing,&#8221; Duncan said in a statement. &#8220;However, it is still substantially higher than issuers&#8217; incremental costs.&#8221;</div><div>&nbsp;</div><div>Duncan said that the swipe fee works well in most situations, but it is unnecessary for small bills. A study conducted by credit card processor TSYS found that 25 percent of consumers used a debit card at coffee shops and 32 percent used them at quick service restaurants. Duncan went on to say the Federal Reserved originally agreed on a lower fee. Under the 2010 Dodd-Frank Consumer Protection and Wall Street Reform Act, the Federal Reserve was required to put regulations in place that would make debit swipe fees that were reasonable.</div><div>&nbsp;</div><div>&#8220;Federal Reserve staff calculated the average cost at 4 cents per transaction and proposed a cap no higher than 12 cents,&#8221; read in a release by the NRF. &#8220;Nonetheless, after heavy lobbying from banks the Federal Reserve board of governors eventually settled on 21 cents plus 0.05 percent of the transaction for fraud recovery and allowed another 1 cent for fraud prevention in most cases.&#8221;</div><div>&nbsp;</div><div>The NRF has the support from other groups, such as the Food Marketing Institute, the National Association of Convenience Stores and the National Restaurant Association.</div><div>&nbsp;</div><div><a href="http://nrn.com/government/merchants-seek-lower-debit-card-swipe-fees?utm_source=1851franchise.com&utm_medium=article&utm_campaign=nrf-seeks-to-lower-debit-card-swipe-fee-4080" target="_blank" rel="nofollow" target="_blank">Click here to read the original article</a>.</div><div></div>

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The National Retail Federation believes the fee is unnecessary for smaller bills

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