WASHINGTON - On Wednesday, June 29, the Federal Reserve will announce its final rule on debit card swipe fees.

On December 16, 2010, the Federal Reserve issued a proposed rule, as directed by Congress in the financial services reform bill, that sought to ensure that debit card swipe fees are reasonable and proportional to the processing costs incurred. The Federal Reserve never intended to eliminate debit card swipe fees, but to define a rate that was fair and equitable, with per-transaction rates of 7 cents or 12 cents.

The Federal Reserve also asked for public comments to proposed rule, originally set to be finalized by April 21 and implemented by July 21. However, in March, Federal Reserve Chairman Ben Bernanke said that that the Fed would complete final swipe fee reform regulations in time for retailers to begin offering customers discounts and other benefits this summer as scheduled, but would hit the originally proposed April 21 deadline.

Thanks to NACS members and their grassroots efforts, our industry defeated an attempt in the U.S. Senate on June 8 to delay the debit card swipe fee rules. Be sure to read NACS Daily next week for full coverage of the Federal Reserve??s final rules.