The Federal Reserve proposed a 12 cent cap on the fees banks would be allowed to charge merchants for debit card transactions, a move that could cut into the revenue for banks that issue debit cards.
Capping debit interchange fees, sometimes called swipe fees, would help merchants by replacing the current system, in which they generally pay between 1 percent and 2 percent of the dollar value of each transaction.
The Federal Reserved said consumers would not likely see a swipe fee cap translate into lower prices, except in some highly competitive markets. It may, however, result in banks cutting back on debit card reward programs or searching for other ways to offset the impact of lower fees.