Bank Fees Capped: What Will It Mean to the Consumer?

| June 9, 2011 | 0 Comments
bank fees capped

(Susana Gonzalez / For The Times / June 8, 2011)

(The Senate rejects a delay of new federal regulations that will slash the swipe fees financial institutions charge merchants when customers pay with debit cards.)  

Author: Sylvia Burley

For once, Main Street scored a victory over Wall Street!  The Senate left in place pending federal rules that will cap the fees charged by banks each time a consumer swipes a debit card.

The regulation, approved as part of last year’s Wall Street overhaul law, is scheduled to go into effect next month.  The Federal Reserve would cap debit card swipe fees to 12 cents per transaction.  Fees now average 44 cents, officials said.  Swipe fees totalled about $16 billion in 2009.

Retailers largely support the new regulation, but banks and credit card companies have mostly opposed limits being placed on the amount they can collect on debit card transactions, which are now higher than any other form of noncash payments.

But the attempt Wednesday to roll back the regulations and preserve the higher fees came within six votes of passage, so we know the fight isn’t over.


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About the Author ()

Sylvia Burley is a Freelance Writer and Integrated Marketing & Communications Consultant. She writes on various topics including marketing, politics, entertainment, current events, and living green. A native Detroiter, she is a graduate of Michigan State University and loves singing, foreign movies and rollercoasters. She currently resides in Atlanta because she doesn't like the cold.

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