RILA: Proposed Federal Reserve debit rule a step forward

Arlington, Va. -- The Retail Industry Leaders Association said Thursday that the Federal Reserve’s proposed rule on swipe reform is a step in the right direction.

“Although Federal Reserve’s proposal is not entirely conclusive, it does validate the long-held claims of merchants and consumers that the electronic payments market is broken and needs to be fixed,” said Katherine Lugar, RILA executive VP for public affairs.

Lugar added that Thursday’s announcement is a step forward for the “effort to bring relief to merchants and consumers who for too long have faced excessive fees and unfair rules imposed by big banks and credit card companies. Proposed cost reductions will undoubtedly result in savings for consumers,” she said.

Lugar added that RILA intends to continue to make its case to the Federal Reserve, emphasizing that, without strong reforms, merchants and consumers will “continue to be harmed.”