But there’s more than inconvenience at issue when it comes to state debit cards for the unemployed. Had Tressler decided to take one, he might have been subjected to a whole array of extra charges, including $1.50 for each withdrawal of cash from an ATM that isn’t “in-network.”
timestranscript.com – N.B. Senator blasts high credit card fees | By james foster – Breaking News, New Brunswick, CanadaJanuary 31, 2011
Ringuette believes credit card fees imposed on businesses that accept cards and on their customers who use them are wildly exorbitant compared to some other jurisdictions, unjustly enriching banks on the backs of the consumer who ultimately pays to cover those fees via higher prices even if they don’t even own a card
House Financial Services Chairman Spencer Bachus of Alabama recently announced that one of the group’s subcommittees will meet on February 17 to discuss whether a Federal Reserve proposal to cap interchange fees on debit card purchases at 12 cents per transaction is fair, according to the committee’s website
Retailers beg for duty and fee relief to survive recession – Bermuda Sun… Beyond the Headlines – Hamilton, BermudaJanuary 28, 2011
When a consumer pays by debit or credit card, the retailer must pay the bank or credit card firm an interchange or ‘swipe’ fee. In the U.S. the average debit card processing fee is 1.3 per cent per transaction, which can add up to hundreds of dollars a month for a small business. Credit card transaction fees here are between two and three per cent.
Consumer groups and some lawmakers contend that prepaid cards lack some of the protections offered by traditional bank and credit union accounts, and often include an assortment of fees that can rapidly erode a card holder’s balance.
A new federal proposal would slash fees that stores pay on debit cards, and big banks and financial companies expect big losses. To compensate, many banks plan to cut rewards programs on debit cards or add annual fees on the cards. Others expect to increase fees on other accounts.
While many banks are increasing fees across the board, some lenders are completely removing them for credit cards, largely in an effort to change public perception.