Return of the Debit Card Swipe Fees

Tuesday, March 08, 2011

Debit card "swipe fees" were one way that banks made billions of dollars a year. These fees were paid by retailers every time you used your debit card. In the aftermath of the financial crisis, Congress cut these fees significantly, to the great relief of merchants across the country. The Fed is now facing an April deadline to write the rules for the current lower fees, and banks are waging a war to try to reverse these cuts. Louise Story, Wall Street and finance reporter for The New York Times, explains how new rules could impact you as a consumer.

Guests:

Louise Story

Produced by:

David J Fazekas

Comments [1]

george tibbetts from ATLANTA

ORIGINALLY DEBIT CARD FEES WERE BASED ON A SWIPE FEE ONLY AND DID NOT INCLUDED A DISCOUNT %. THIS MADE THEM MUCH CHEAPER FOR TRANSACTIONS ABOVE $30-$40. THEN THE BANKS/ CREDIT CARD COMPANIES GOT GREEDY AND ADDED A DISCOUNT PERCENTAGE AS WELL AS THE DISCOUNT %.
OF COURSE THE BANKS ARE NOW TRYING TO FIND A WAY TO OFFSET THE POTENTIAL LOSS.
ONE MIGHT ASK HOWEVER WHICH IS MORE IMPORTANT THE COUNTRIES RETURN TO PROFITABILITY OR THE BANKS BOTTOM LINE?

Mar. 08 2011 10:11 PM

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