From the federal reserve directly : https://www.federalreserve.gov/aboutthefed/boardmeetings/frn-reg-ii-20231025.pdf Also, I guess what I meant is, the cap used to be 45 cents, and when it was reduced to 21 cents, there wasn’t some massive reduction in prices of products for consumers. Merchants just pocket that difference.
Check out FedNow. Basically a domestic government run payment system. Still pretty new and growing.
Fwiw debit card transaction are capped around 21 cents per transaction depending on the size of the bank holding the account. You’re right for credit cards though. Also, imho, I’ve never seen merchants pass along these debit card savings to the consumer. With they would though.
Banks charge higher fees for credit transactions to fuel the loyalty programs (flyer miles, cash back, etc) on those cards. This is why you no longer get any loyalty benefits on debit cards but you still do on credit. The fees don’t cover the risk on credit cards , the interest does.