Getting Going: Is Your Charity Chiseling You? – WSJ.com

Credit-card transaction fees are higher—2.5% to 3% per transaction, on average—with rewards cards typically carrying higher charges than other cards.

via Getting Going: Is Your Charity Chiseling You? – WSJ.com.

Retail’s BIG Blog | Myth or fact? The truth about #swipefees

The truth is retailers will continue to accept all debit cards from all banks. Visa and MasterCard each have the “Honor All Cards Rule.” The rules say if a retailer accepts any Visa debit card, the retailer must accept all debit cards under the Visa name. The same with MasterCard. If the retailer refuses, the card companies can fine the retailer or yank out the retailer’s card privilege. In addition, there is no automated way for a retailer to know at the cash register what fee is charged by a specific card, and it isn’t practical to keep a list of cards or to train thousands of sales associates on which card to accept. Finally, retailers simply aren’t going to turn away a customer with a shopping cart full of merchandise and risk having him or her walk out empty-handed.

via Retail’s BIG Blog | Myth or fact? The truth about swipe fees.

National Retail Federation

“Retailers want to begin passing on swipe fee savings to their customers as soon as possible, and today’s announcement means those plans will be able to move forward as planned despite the anti-consumer efforts of some in Congress,” NRF Senior Vice President and General Counsel Mallory Duncan said. “The Fed has received thousands of comments on this proposal and it is appropriate for that input to be carefully and thoroughly reviewed. If they take a few extra weeks, we understand.”

via National Retail Federation.

Factchecking Banks’ Dubious Claims on Interchange Fees – ProPublica

The Fed has proposed capping debit interchange fees at 12 cents per transaction for banks with more than $10 billion in assets. The plan has riled the banking industry—including the community banks and credit unions exempt from the cap—which has continued to push [8] for the rule to be delayed.

via Factchecking Banks’ Dubious Claims on Interchange Fees – ProPublica.

Lawmakers try to stall law on cutting debit card ‘swipe’ fees – USATODAY.com

Retailers have their own group, the Merchants Payments Coalition, that’s fighting hard against efforts to delay the cap. It argues that consumers pay more for goods and services to compensate for excessive swipe fees.

via Lawmakers try to stall law on cutting debit card ‘swipe’ fees – USATODAY.com.

Panel: Lunch with Debit Card Stakeholders (Pt. 1) – pymnts.com

Mallory Duncan (Senior Vice President, General Counsel, National Retail Federation): “We think pretty lowly of it. This is an area that has been studied to death. Merchants have been paying these fees for too long…. At some point, enough is enough. “

via Panel: Lunch with Debit Card Stakeholders (Pt. 1) – pymnts.com.

Fed to miss debit fee rule deadline | Reuters

Senator Richard Durbin, the Democratic author of the fee limit, has argued a delay is simply a tactic to buy time for a repeal.

via Fed to miss debit fee rule deadline | Reuters.

Banks, merchants debate debit card fee reduction | Reuters

While large banks are primarily targeted by the rules, they have kept a fairly low profile on the public debate, leaving the credit card companies and smaller banks to do the day-to-day lobbying, despite the small-bank exemption.

That was supposed to change on Tuesday with a planned appearance by Pamela Joseph, who runs US Bancorp’s payments unit. She would have been one of the first executives from a top U.S. bank to debate the debit card fee caps in Washington.

via Banks, merchants debate debit card fee reduction | Reuters.

Debit Stakeholders Face Off at PYMNTS.com Durbin Conference – pymnts.com

Top executives from card networks, major banks, credit unions, small financial institutions, law firms, consumer advocate groups and more gathered March 29 in Washington, D.C. at this PYMNTS.com-sponsored event. The conference explored the impact of the 12-cent interchange cap and related regulations the Federal Reserve proposed for debit cards last December in response to Durbin Amendment of the Dodd-Frank financial reform bill.

via Debit Stakeholders Face Off at PYMNTS.com Durbin Conference – pymnts.com.

Merchants | Unfair Credit Card Fees

You can help by writing a letter to your Members of Congress urging them to make sure that swipe fee reforms are here to stay. The big banks are trying to overturn reforms so that they can keep collecting huge profits off of Main Street merchants and consumers. We’ve come to far to let the big banks get their way. Check out one Long Island business owner’s powerful letter here.

via Merchants | Unfair Credit Card Fees.

Why debit fees should be low | Felix Salmon | Analysis & Opinion | Reuters.com

The more that customers have used them over the past 15 years, the more banks have been able to remove minimum balance requirements and transaction fees they used to charge to fund all the cash and checking transactions. These forms of payment cost 70 cents or more a pop, according to JPMorgan — at least 60 percent more than the average debit card fee

via Why debit fees should be low | Felix Salmon | Analysis & Opinion | Reuters.com.

Bernanke Says Bank Overhaul Will Help Small Banks | CNSnews.com

Bernanke said it would be important for the banks to adapt to the changing regulatory environment, in remarks prepared for the annual convention in San Diego of small- and medium-sized banks. Bernanke acknowledged their concerns about the new law. But he said most of the requirements are aimed the country’s biggest banks and not them.

via Bernanke Says Bank Overhaul Will Help Small Banks | CNSnews.com.

Debit-card fee debate focuses on the unknown Capitol Report – MarketWatch

National Retail Federation General Counsel Mallory Duncan replies that consumers have displayed a preference toward the speed and convenience of debit cards, as well as growing aversion to debt, that won’t soon be altered.

via Debit-card fee debate focuses on the unknown Capitol Report – MarketWatch.

Fat ‘swipe’ fees prey on consumers | The Suffolk News-Herald

Just when we thought Congress had finally restored some fairness to runaway credit card processing fees, some lawmakers are trying to reverse course, suspending a portion of the Wall Street Reform and Consumer Protection Act, which requires the Fed to ensure that debit fees are reasonable and proportionate to issuer costs.

via Fat ‘swipe’ fees prey on consumers | The Suffolk News-Herald.

Bill Cheney: Debit Interchange: Those Who Can Least Afford It Will Be Hurt Most

The 12-cent rate puts us in the same boat as that businessman trying to make up his losses on volume. We estimate that up to two out of every three credit unions would lose money on their debit card programs if the interchange regulations reduced interchange-related revenue by 40 percent.

via Bill Cheney: Debit Interchange: Those Who Can Least Afford It Will Be Hurt Most.

Fed will miss deadline on rules for debit card fees, Bernanke says – The Hill’s On The Money

Bernanke said the Fed hopes to finalize the rules by July 21, when that provision of the law goes into effect.

via Fed will miss deadline on rules for debit card fees, Bernanke says – The Hill’s On The Money.

Every Retailer and American family should write Congress and urge supporting the Durbin #SwipeFees Amendment

Pro-Interchange Regulation?

If you are in favor of the interchange limitations in the Durbin Amendment, you’ll want to visit Unfair Credit Card Fees (a website created by the Merchant Payments Coalition), and use their letter to Congress which states:

I am writing to you today to urge you to vote NO on any type of delay of the debit card swipe fee reform.

Congress should make it easier, not harder, to offer consumer discounts; delaying swipe fee reform will make discounting nearly impossible. And discounting is all the more important as gasoline tops $4 a gallon.

The same big banks that were bailed out a few years back are asking Congress to turn its back on American business owners and consumers, so that the credit card companies and their banking allies can keep on gouging Main Street Americans with their price-fixing swipe fee scheme.

Swipe fee reform was designed to bring fairness and transparency to the shrouded swipe fee payments system. The law says that the big banks have a choice: they can open the fees to competition and charge whatever price the market permits or they can continue to fix their fees, but those price-fixed fees must be “reasonable and proportional” to their costs.

Congress has held 9 hearings and 1 markup on swipe fees and the GAO has issued 3 reports. I can read the writing between the lines. I know that S. 575 and H.R. 1081 were not written to study the swipe fees that are crippling my business and every consumer in your district; they were written using the big banks’ scare tactics in order to completely derail these reforms. These aren’t “study” bills…they are “kill” bills.

Americans pay the highest swipe fees in the world. Merchants and consumers have been waiting for years to see these reforms realized, and every month of delay means another $1 billion that we have to hand over to the big banks and credit card companies.

Durbin calls debit card system ‘price-fixing’ #swipefees

A spokeswoman for MasterCard referred this afternoon to a recent statement by the company that deploys wording similar to Durbin’s, albeit on the opposite side of the issue. “We are confident that a study will show that directing the government to fix prices rather than letting the free market system work will result in higher prices for consumers,” the statement reads. Likewise, the Electronic Payments Coalition, an industry group pressing for the delay, asks — then answers — this question on its Web site:

via Durbin calls debit card system ‘price-fixing’.

Wall Street fails to learn from mistakes | The Columbia Daily Tribune – Columbia, Missouri

Banks, of course, cannot argue with a straight face that a bill that reduces their allowed transaction profit from 1,100 percent to 300 percent, as Durbin’s legislation does, would send them to the poorhouse. They’re arguing instead that allowing more competition in the swipe-fee industry somehow would damage smaller banks.

via Wall Street fails to learn from mistakes | The Columbia Daily Tribune – Columbia, Missouri.

AmEx Loses Bid to Dismiss Currency Fee Lawsuit

U.S. District Judge William Pauley in Manhattan Tuesday concluded that a jury could find that conduct by the credit card and travel services company “caused injury to competition in the credit card market.”

via AmEx Loses Bid to Dismiss Currency Fee Lawsuit.

Dick Morris Reports: Swipe Fees [OMG, I agree with Dick Morris, gasp]

7-Eleven Rallies Customers Against Card Fees (AP) #SwipeFees

Riding a wave of public outrage over credit card practices, 7-Eleven Inc. wants to show merchants are victims of the industry too

Senator Dick Durbin Discusses Credit Card Interchange #SwipeFees Durbin Amendment on Bloomberg

March 28 (Bloomberg) — U.S. Senator Richard Durbin of Illinois, the chamber’s No. 2 Democrat, talks about a proposed Federal Reserve rule that would cap debit-card “swipe” fees. Durbin, speaking with Betty Liu on Bloomberg Television’s “In the Loop,”  (Source: Bloomberg)

CBS: Banks Stop Debit Card Rewards #SwipeFees [Gimmick to Mislead Americans]

Chris Wragge talks to CBS News business and economics correspondent Rebecca Jarvis about how banks are raising their rates and taking away rewards programs from customers.

 

Layton promises to cap credit card #swipefees rates – Canada Votes 2011 – CBC News

NDP Leader Jack Layton said Tuesday he would cap credit card rates and fees as a way to control the household debt of Canadian families.

via Layton promises to cap credit card rates – Canada Votes 2011 – CBC News.

Canadian Banks, Visa, MasterCard To Face Potential Class Action Suit – WSJ.com

The lawsuit names Visa Inc.’s (V) Visa Canada Corp., MasterCard International Inc. (MA#, Bank of Montreal #BMO#, Bank of Nova Scotia #BNS#, Canadian Imperial Bank of Commerce #CM#, Desjardins Financial Group Inc., National Bank of Canada #NA.T#, Royal Bank of Canada #RY#, Toronto-Dominion Bank #TD#, Bank of America Corp.’s #BAC) MBNA Bank Canada, Capital One Financial Corp. (COF) and Citigroup Inc. (C).

via Canadian Banks, Visa, MasterCard To Face Potential Class Action Suit – WSJ.com.

Backgrounder: Behind the Battle Over Hidden Debit Card #SwipeFees » Knoxville News Sentinel

Consumer groups have decried the delay, saying it would postpone much-needed reform to a system that is “uncompetitive, non-transparent and harmful to consumers’ [PDF]. At the same time, these groups voiced concerns that if interchange reform passes, banks will levy other charges on consumers — something many banks have warned they may do.

via Backgrounder: Behind the Battle Over Hidden Debit Card Fees » Knoxville News Sentinel Mobile.

Canadian Banks, Visa, MasterCard To Face Potential Class Action Suit – WSJ.com

The claim alleges that Visa and MasterCard rules force merchants to accept every Visa or MasterCard credit card, even if those cards carry high fees for merchants. It also alleges that the rules prevent merchants from charging more for payments with premium cards.

via Canadian Banks, Visa, MasterCard To Face Potential Class Action Suit – WSJ.com.

PYMNTS.com Presents: The Fed’s Proposed Debit Card Regulations: Are They Reasonable and Who Will Win #SwipeFees

via PYMNTS.com Presents: The Fed’s Proposed Debit Card Regulations: Are They Reasonable and Who Will Win.

Credit card companies, banks hit with class action – The Globe and Mail #SwipeFees

Two law firms say they have filed a class-action lawsuit against Visa and MsterCard  and some of the country’s biggest banks, alleging they worked together to fix prices charged to merchants.

The suit, filed by Branch MacMaster LLP and Camp Fiorante Matthews, claims that the credit card companies and banks force retailers to accept all of their credit cards — even if the cards charge them higher processing fees.

via Credit card companies, banks hit with class action – The Globe and Mail.

Banks, business locked in combat over interchange #swipefees – The Joplin Globe, Joplin, MO

“The big banks and credit card companies have been saved from their own internal failures and shortcomings time and time again by this government,” he said. “Now, here they go again looking for a break on interchange fees worth $1.3 billion a month to them.”

Durbin, the Senate’s No. 2 Democrat, exempted smaller banks and credit unions — institutions with less than $10 billion in assets. Nonetheless, community banks are working against the fee change.

via Banks, business locked in combat over interchange fees » Business » The Joplin Globe, Joplin, MO.

Analyst: Brighter Outlook For US Bill To Delay Debit-Fee Caps – WSJ.com

The odds are stacked against Tester (D., Mont.) and other lawmakers who are pushing for a delay in the federal regulations on so-called interchange fees. That’s because proponents of delaying the rules would likely need to secure 60 votes even though just last summer, 64 senators voted for regulating the fees.

via Analyst: Brighter Outlook For US Bill To Delay Debit-Fee Caps – WSJ.com.

Maryland 7-Eleven Franchisees Travel to Washington, DC To Support #SwipeFees Reform (via Press Release)

With swipe fee reform on the chopping block before it has even taken effect, franchisees fly to nation’s capital to ask Congress to stand strong with America’s small business and consumers

WASHINGTON—This week, 7-Eleven franchisees from across Maryland and Virginia plan to meet with their members of Congress and staff to again discuss the urgent need to implement the swipe fee reforms that were passed by Congress passed and signed into law by the president last year. 

“I’m fed up,”said Dennis Lane, 7-Eleven franchisee and national spokesman for Reform Swipe Fees NOW!  “On behalf of more than 5,000 7-Eleven franchisees, thousands of employees and millions of customers who supported our historic campaign to stop unfair fees, we are going back to Washington to hold politicians accountable for the promises they made, and ask for the protection of much needed swipe fee reform that would benefit real Americans.”

Last year, President Barack Obama signed the Wall Street Reform and Consumer Protection Act, a piece of legislation that included an amendment to reform debit card swipe fees that gathered broad bipartisan support, marking a tremendous victory for convenience store owners and other small owners across the country.  In 2009 and 2010, 7-Eleven submitted over 1.6 million petitions signed by franchisees, employees and customers, and conducted dozens of meetings with members of Congress and staff. 

In light of proposed legislation to repeal or delay swipe fee reform,  7-Eleven franchisees’ businesses are under threat once again .  With their future livelihoods under attack, 7-Eleven franchisees are once again taking time away from their business to go to Washington and hold their representatives accountable for swipe fee reform that was passed last year.

“As a 7-Eleven franchisee in a small town, my employees and I are very involved in the community, in the neighborhood, and in the schools.  It’s very rewarding,” said Imtiaz Ahmad, 8-year 7-Eleven Franchisee in Clinton, MD.   “But if credit and debit card fees continue increasing, costs will go up for my customers, profits will decrease, and I might not have enough money to pay as many employees.  I am going to tell my Congressman that we can no longer afford these high fees.”

Over the next three months, dozens of 7-Eleven franchisees from across the nation will fly to Washington, D.C. to meet with their members of Congress and ask them to keep their promises, stand strong with America’s small businesses and consumers, and to oppose any effort to delay or repeal the swipe fee reform that Main Street fought so hard for. 

WHO:		Dennis Lane, 7-Eleven Franchisee and national spokesman for Reform Swipe Fees NOW! Imtiaz Ahmad, 7-Eleven Franchisee, Clinton, MD
WHERE:		U.S. Capitol Washington, DC
WHEN:		Tuesday, March 29 – Wednesday, March 30

About FZs For Fairness: FZs for Fairness is a project of 7-Eleven.  The project unites more than 5,000 7-Eleven franchisees across the United States that are fighting for fair debit and credit card swipe fees, once and for all.

#SwipeFees Reform – CNBC.com Dick Durbin Interview #FightSwipeFees

Swipe Fees Reform – CNBC.com.

Follow WayTooHigh.com on Twitter – http://www.Twitter.com/WayTooHigh

MasterCard Aims to Displace Cash in Australia With Tap-Card – Bloomberg

MasterCard is today releasing a five-year plan to broaden the use of its tap cards, which don’t require shoppers to enter a personal code or provide a signature during transactions. Some 35,000 shops in Australia accept PayPass, Masters said.

via MasterCard Aims to Displace Cash in Australia With Tap-Card – Bloomberg.

Part II – CNBC EXCERPTS: SENATOR RICHARD DURBIN ON CNBC’S “SQUAWK BOX” TODAY – CNBC

Following are excerpts from the unofficial transcript of Senator Richard Durbin on CNBC’s “Squawk Box” today. Following is a link to the full interview on CNBC.com: http://www.cnbc.com/id/15840232?video=3000012928&play=1.

via CNBC EXCERPTS: SENATOR RICHARD DURBIN ON CNBC’S “SQUAWK BOX” TODAY – CNBC.

CNBC EXCERPTS: SENATOR RICHARD DURBIN ON CNBC’S “SQUAWK BOX” TODAY – CNBC

THERE IS ABSOLUTELY NO CHOICE FOR A MERCHANT ACROSS AMERICA BUT TO ACCEPT VISA AND MASTERCARD IF THEY ARE GOING TO BE IN BUSINESS WHETHER IT IS A CONVENIENCE STORE OR A BIG BOX AND THE FACT IS THIS .44 CENTS WAS IMPOSED BY THE CREDIT CARD COMPANIES THROUGH THE BANKS ON THESE MERCHANTS SO WHEN YOU SAY YOU ARE AGAINST PRICE FIXING HOW DO YOU DEFEND THAT?.”

via CNBC EXCERPTS: SENATOR RICHARD DURBIN ON CNBC’S “SQUAWK BOX” TODAY – CNBC.

Google Pursues Role in Mobile Payments – WSJ.com (via Robin Sidel) #SwipeFees

The planned payment system would allow Google to offer retailers more data about their customers and help them target ads and discount offers to mobile-device users near their stores, these people said. Google isn’t expected to get a cut of the transaction fees.

via Google Pursues Role in Mobile Payments – WSJ.com.

Congress is wrong to delay reducing debit card fees – Sacramento Bee

Banks, of course, cannot argue with a straight face that a bill that reduces their allowed transaction profit from 1,100 percent to 300 percent, as Durbin’s legislation does, would send them to the poor house. They’re arguing instead that allowing more competition in the swipe-fee industry somehow would damage smaller banks.

via Congress is wrong to delay reducing debit card fees – Sacramento Living – Sacramento Food and Wine, Home, Health | Sacramento Bee.

Getting Going: Is Your Charity Chiseling You? – WSJ.com

Credit-card transaction fees are higher—2.5% to 3% per transaction, on average—with rewards cards typically carrying higher charges than other cards.

via Getting Going: Is Your Charity Chiseling You? – WSJ.com.

Guest opinion: Merchants overcharged as banks profit from debit card fees

It was interesting to read all of the biggest banks’ talking points against swipe-fee reform in the March 20 guest opinion by Tom Boos of the Billings Federal Credit Union. Unfortunately, the op-ed didn’t describe the problem or the proposed solution. Instead, it was full of the campaign scare tactics and misinformation upon which opponents of swipe fee reform have relied to make their case.

via Guest opinion: Merchants overcharged as banks profit from debit card fees.

Swiping consumers from a new angle – San Antonio Express-News

At the middle of the issue sits the electronic payments system for credit and debit cards that must be paid for by somebody. The system belongs to the financial industry, financed up until now by swipe fees that average about 44 cents per transaction.

via Swiping consumers from a new angle – San Antonio Express-News.

Wells Fargo, Chase cancel debit rewards program – #swipefees

JPMorgan Chase (JPM, Fortune 500) notified existing customers last week that their debit rewards programs will disappear July 19. The bank eliminated debit rewards for new customers in February.

via Wells Fargo, Chase cancel debit rewards program – Mar. 25, 2011.

Wells Fargo To End Debit Rewards Program | MyBankTracker.com

In a move attributed to the pending regulatory changes threatening bottom lines of U.S. banks, Wells Fargo says it will no longer be enrolling its customers in debit rewards programs.

via Wells Fargo To End Debit Rewards Program | MyBankTracker.com.

Squeezing the banks’ balloons – Main Line Suburban Life – Main Line Media News

In an attempt to prevent another financial crisis, Congress passed the Dodd-Frank Bill last year. It has a slew of new regulations, many of which the big banks neutered fairly quickly with their lobbyists. What they didn’t see coming was an amendment by Dick Durbin (Dem., Ill.) that caps fees banks can charge retailers for debit- or credit-card transactions.

via Squeezing the banks’ balloons – Main Line Suburban Life – Main Line Media News.

NEA, NAACP Swallow Bankers’ Line on #SwipeFees | FDL News Desk

I mean this is just corrupt. The claims that this would hurt low and middle-income Americans is an invented claim from the banks. If you want to get real about this, it represents the banks holding their customers hostage, and these interest groups want to pay the ransom.

via NEA, NAACP Swallow Bankers’ Line on Swipe Fees | FDL News Desk.

Durbin visits Quincy to urge support for cap on merchant #swipefees

U.S. Sen. Dick Durbin was in Quincy Thursday morning to offer support for a cap on swipe fees paid by businesses for credit and debit card sales.

via Quincy Herald Whig.

Durbin: Interchange delay bill will need 60 votes – The Hill’s On The Money #SwipeFees #FightSwipeFees

“Those who say, ‘Well, we need to study this more’ — let me tell you what, that is a smokescreen as far as I’m concerned,” he said. “We don’t need a study, we need action.”

via Durbin: Interchange delay bill will need 60 votes – The Hill’s On The Money.

In Tennessee, small businesses chide those who would seek to undo Durbin Amendment – Retail Industry Leaders AssociationRetail Industry Leaders Association

The fact is, economic and regulatory experts agree the Fed rule is good public policy, despite bank pleas to maintain their broken marketplace so they can keep their profits disproportionately high (and unearned) at the hands of corner stores across Middle America.

via In Tennessee, small businesses chide those who would seek to undo Durbin Amendment – Retail Industry Leaders AssociationRetail Industry Leaders Association.

Huffington Post: The Fight Over Wall Street’s ‘Invisible Tax’ #fightswipefees #swipefees

The Durbin Amendment’s an opportunity to end an unfair trade practice. It ends one of the many unscrupulous banking practices that continue to torment the average American. It ends the “invisible sales tax.” And it’s… a stimulus. Think of it as a way to return $14 billion every year to the real economy. And it doesn’t come from taxes, but from the bloated financial sector — a sector that’s already back to the historically high share of national profits that it had before the Great Recession.

via Richard (RJ) Eskow: Debit Card Sharps: The Fight Over Wall Street’s ‘Invisible Tax’.

Richard (RJ) Eskow: Debit Card Sharps: The Fight Over Wall Street’s ‘Invisible Tax’

As Sen. Durbin says, ” “Every month we delay… means another $1.3 billion bailout… The $13 trillion banking industry doesn’t need another handout — especially one paid for by small business and American consumers. “

via Richard (RJ) Eskow: Debit Card Sharps: The Fight Over Wall Street’s ‘Invisible Tax’.

Richard (RJ) Eskow: Debit Card Sharps: The Fight Over Wall Street’s ‘Invisible Tax’ #swipefees

banks and their political allies are actually defending this oligolopolistic practice on free-market grounds! Econ nerds who find that galling and even (to use a technical term) chutzpadik may enjoy this little news item, also from Konczal. (You’ve been forewarned: it’s nerdy.)

via Richard (RJ) Eskow: Debit Card Sharps: The Fight Over Wall Street’s ‘Invisible Tax’.

Banks and the Fight Over Debit Card Fees: 6 Things to Watch For – CBS MoneyWatch.com #swipefees

Will you lose debit-card rewards programs? Maybe. It remains to be seen whether other banks follow Chase’s lead. If they do, the loss isn’t large. In general, debit-card programs offer only half the points that you get from using credit card rewards.

via Banks and the Fight Over Debit Card Fees: 6 Things to Watch For – CBS MoneyWatch.com.

Banks and the Fight Over Debit Card Fees: 6 Things to Watch For – CBS MoneyWatch.com

Debit and credit card fees are a merchant’s second-higher operating expense, after labor costs, says Doug Kantor of Steptoe & Johnson, who lobbies for the retailers.

via Banks and the Fight Over Debit Card Fees: 6 Things to Watch For – CBS MoneyWatch.com.

How Banks Scare Us Into Becoming Little Bank Lobbyists

Hamilton Nolan — “Bureaucrats want to take away your debit card!” Seems unlikely. But that’s the best slogan the banking industry could come up with to try to enrage consumers about a proposal to cut the fees that banks can charge to retailers when you use your debit card to buy something.

via How Banks Scare Us Into Becoming Little Bank Lobbyists.

Gawker — Guess Who’s Speaking Up on Behalf of the Poor Banking Industry?

What you may not know is just who is lining up to support the beleaguered bankers in their fight to maintain hefty fees. The WSJ lists a few of the banking industry’s primary allies on this issue:

The NAACP.

The U.S. Hispanic Chamber of Commerce.

The National Education Association.

“The big banks have kept a low profile throughout the intense lobbying drive, letting the community banks and credit unions take the lead role.”

via Gawker .

Merchants lobby Congress for credit card reform | The Newark Advocate | NewarkAdvocate.com

They urged Congress and the Federal Reserve to protect swipe-fee reform as spelled out in the so-called Durbin Amendment. It’s an amendment to the Dodd–Frank Wall Street Reform and Consumer Protection Act signed into law by President Barack Obama in July 2010.

via Merchants lobby Congress for credit card reform | The Newark Advocate | NewarkAdvocate.com.

Retailers, banks at war over debit card #swipefees | The Salt Lake Tribune

The full-page ads in The Tribune and the News accuse Lee of reversing his stance on “crony capitalism” and Wall Street bailouts. During his senatorial campaign, Lee said he wouldn’t have voted for the 2008 Troubled Asset Relief Program to inject fresh capital into banks, the ad said.

Now, the ad says, “Mike Lee co-sponsored a bill that would help big TARP banks protect their debit card swipe fee heist. Another big TARP bailout!”

via Retailers, banks at war over debit card fees | The Salt Lake Tribune.

Illinois bankruptcy attorney Andy Miofsky says banks threaten to increase fees and cut off credit.

In early 2009 Senator Dick Durbin [D IL] championed the rights of consumers in an effort to reform student loans, mortgage loans, usury and credit card fees charged by banks. Along the way at every turn he was met with fierce opposition from banking industry lobbyists

via Illinois bankruptcy attorney Andy Miofsky says banks threaten to increase fees and cut off credit..

Letters – WSJ.com Congress Is Right in Regulating Debit Card #SwipeFees – Matthew Shay, NRF

Your editorial “Debit Card Debacle” (March 17) accuses swipe-fee reform of fixing prices for debit card swipe fees but ignores that the card industry has fixed prices at monopoly high levels for years, with the nation’s 7,500 banks all charging the exact same schedule of swipe fees regardless of who issues a card. Regulations proposed by the Federal Reserve to implement reform would set caps on the card industry’s price-fixed fees, but they would also give banks the option and incentive to set whatever fees they want above or below those caps as long as they do so independently and competitively.

via Letters – WSJ.com.

Behind the Battle Over Hidden Debit Card #SwipeFees

Consumer groups have decried the delay, saying it would postpone much-needed reform to a system that is “uncompetitive, non-transparent, and harmful to consumers” [PDF]. At the same time, these groups voiced concerns that if interchange reform passes, banks will levy other charges on consumers — something many banks have warned they may do.

via Minyanville.

Representatives Don’t Budge on Positions Regarding Interchange

Hatcher made the case that retailers, particularly supermarkets, are saddled with expensive interchange fees that they can neither control nor renegotiate and that it eats into their already small profit margins.

via Representatives Don’t Budge on Positions Regarding Interchange.

Behind the battle over hidden credit card fees | Alaska Dispatch #swipefees

Visa Europe has capped its debit card interchange fees at 0.2 percent of each transaction, and U.S. interchange rates currently average about six times that.

via Behind the battle over hidden credit card fees | Alaska Dispatch.

This Week in Credit Card News: Fees, Taxes and Eternal Debt – MoneyBuilder – making sense of your finances – Forbes

New Credit Card Fee is Windfall for Bank of America, Unfair to Consumers

Bank of America’s $59 annual charge for about 5% of its cardholders that begins April 11 appears to violate the spirit of financial reforms.

via This Week in Credit Card News: Fees, Taxes and Eternal Debt – MoneyBuilder – making sense of your finances – Forbes.

Bids for Delay of Durbin Amendment in Congress

Credit unions and other opponents of the Federal Reserve’s proposed rule capping debit interchange fees received good news last week when bills to delay the rule’s implementation were introduced in the Senate and House.

via Bids for Delay of Durbin Amendment in Congress.

Pymnts.com Conference Agenda on Federal Reserve Proposed Debit Card Limits #SwipeFees

Click here to view Pymnt.com conference and agenda details

Local protesters voice anger over U.S. Bank – East Oregonian: News

U.S. Bank also charges a fee when an account is overdrawn. However, Hudson said, the account user can’t put money into the account to avoid such fees.

via Local protesters voice anger over U.S. Bank – East Oregonian: News.

Verifone’s CEO Doug Bergeron Defends Actions Against Square: “It’s a Competitive World.” | Tricia Duryee | eMoney | AllThingsD

In response, Square’s CEO Jack Dorsey said the claims weren’t “fair or accurate,” and that VeriFone was overlooking all of the protections already built into your credit card.

via Verifone’s CEO Doug Bergeron Defends Actions Against Square: “It’s a Competitive World.” | Tricia Duryee | eMoney | AllThingsD.

Washington Report: Take Action To Protect Swipe Fee Reform (NACSOnline)

Legislation is circulating both the House and Senate to delay swipe fee reform — tell your members of Congress not to delay this important industry initiative.

WASHINGTON — This week legislation was introduced in both the House and Senate that would delay debit card swipe fee reform. S. 575 and H.R. 1081 were introduced by Sen. Jon Tester (D-MT) and Rep. Shelley Moore Capito (R-WV), respectively. The stated goal of the legislation is to delay the Federal Reserve’s rulemaking process and to study more about swipe fees.

Both bills elevate big bank profits over the health of the economy and efficiency of the payments system and ignore current problems. Here is a summary:

Neither bill seeks to study what is best for the economy or the payments system as a whole.
Neither bill seeks information about whether the Fed’s rule will improve transparency and competition for debit swipe fees.
Neither bill seeks any information on the 95,000 jobs per year that would be created through reduced interchange.
Both bills ignore the many studies that have already been done, which have found that consumers pay swipe fees today through increased prices, and low-income consumers pay more to subsidize high-income consumers.
Both bills ignore that consumers will pay $1 billion more per month than they should for the entire time that Fed’s rule is delayed.
Both bills ignore the facts about fees hurting businesses, including that card fees are the second-highest operating cost for most merchants and that card fees are the fastest-growing business expense for U.S. merchants.

Cosponsors of S. 575 include:

Sen. Jon Kyl (AZ)
Sen. Tom Carper (DE)
Sen. Chris Coons (DE)
Sen. Pat Roberts (KS)
Sen. Claire McCaskill (MO)
Sen. Ben Nelson (NE)
Sen. Tom Coburn (OK)
Sen. Pat Toomey (PA)
Sen. John Thune (SD)
Sen. Bob Corker (TN)
Sen. Mike Lee (UT)

Cosponsors of H.R. 1081 include:

Rep. Michele Bachmann (MN-6)
Rep. Roscoe Bartlett (MD-6)
Rep. Dan Burton (IN-5)
Rep. Quico Canseco (TX-23)
Rep. John Carney (DE)
Rep. Jason Chaffetz (UT-3)
Rep. Gerry Connolly (VA-11)
Rep. Bob Gibbs (OH-18)
Rep. Jeb Hensarling (TX-5)
Rep. Wally Herger (CA-2)
Rep. Mike Kelly (PA-3)
Rep. Dale Kildee (MI-5)
Rep. Larry Kissell (NC-8)
Rep. Blaine Luetkemeyer (MO-9)
Rep. Kenny Marchant (TX-24)
Rep. Carolyn McCarthy (NY-4)
Rep. Tom McClintock (CA-4)
Rep. Gregory Meeks (NY-6)
Rep. Gary Miller (CA-42)
Rep. Randy Neugebauer (TX-19)
Rep. Bill Owens (NY-23)
Rep. Ed Perlmutter (CO-7)
Rep. Gary Peters (MI-9)
Rep. Jared Polis (CO-2)
Rep. James Renacci (OH-16)
Rep. Ed Royce (CA-40)
Rep. Pete Sessions (TX-32)
Rep. Albio Sires (NJ-13)
Rep. Scott Tipton (CO-3)
Rep. Debbie Wasserman Schultz (FL-20)
Rep. Lynn Woolsey (CA-6)

All retailers must continue to fight for debit card swipe fee reform. Your members of Congress are requesting to hear from you and each letter, e-mail and phone call makes a huge difference. Go to nacsonline.com/swipefeesletter and do your part today. Spread the word and flood your members’ offices with our message: “Do not delay swipe fee reform. Vote no on S. 575 and H.R. 1081.”

Source: NACS

Conference to Examine Impact of Fed’s Proposed Debit Card Regulations – pymnts.com

A half-day conference will examine the potential impact of proposed Federal Reserve Board regulations on debit card interchange fees. Under the proposed regulations, bank debit card fees charged to merchants for debit card transactions would drop by some 80%.

via Conference to Examine Impact of Fed’s Proposed Debit Card Regulations – pymnts.com.

MasterCard Worldwide Provides Support for Japanese Relief Efforts | EON: Enhanced Online News

PURCHASE, N.Y.–(EON: Enhanced Online News)–MasterCard Worldwide announced that it will provide support for the Japanese relief efforts following the tragic earthquake and tsunami. Interchange fees on Japanese relief donations that are made using U.S. issued MasterCard cards to the following organizations will be waived: American Red Cross, AmeriCares, Doctors Without Borders, International Rescue Committee, Save the Children and World Vision.

In Canada, interchange fees on Japanese relief donations that are made using Canadian issued MasterCard cards to the following organizations will be waived: Canada Helps, Canadian Red Cross, Doctors Without Borders, International Rescue Committee, Save the Children and World Vision.

In addition to waiving interchange fees, MasterCard will also donate revenues generated by charitable contributions made to these organizations through May 15, 2011.

MasterCard’s support also includes a $250,000 corporate donation to the relief efforts and is double-matching employee contributions to the Japanese disaster relief funds of those charities listed above. MasterCard will continue to update our response to the disaster on our website as more information becomes available.

via MasterCard Worldwide Provides Support for Japanese Relief Efforts | EON: Enhanced Online News.

New credit card fee is a windfall for Bank of America, unfair for customers – latimes.com

Bank of America’s $59 annual charge for about 5% of its cardholders that begins April 11 appears to violate the spirit of financial reforms.

via New credit card fee is a windfall for Bank of America, unfair for customers – latimes.com.

Visa Responds to Japan Earthquake and Tsunami — SAN FRANCISCO, March 11, 2011 /PRNewswire/ —

[Via VISA Press Release]

In conjunction with its clients, Visa will waive interchange fees on donations made through April 30, 2011 to a select group of major U.S.- and Canada-based charities that are providing support to relief efforts. Eligible charities are:United StatesAmerican Red Cross

AmeriCares

Habitat for Humanity

Mercy Corps

Oxfam America

Save the Children

US Fund for UNICEF

World Vision

CanadaCanadian Red Cross

CARE Canada

Oxfam Canada

Oxfam-Quebec

Save the Children Canada

UNICEF Canada

World Vision Canada

via Visa Responds to Japan Earthquake and Tsunami — SAN FRANCISCO, March 11, 2011 /PRNewswire/ —.

U.S. senators seek delay in cap on debit-card fees

Nine U.S. senators introduced bipartisan legislation on Tuesday to delay and study a new regulation that would cap interchange fees charged in debit-card transactions

via U.S. senators seek delay in cap on debit-card fees.

CNN Money Addresses #SwipeFees (via NACSOnline)

Banks currently make about $16 billion a year on the 44 cents per transaction fee, a total it said would drop by up to $13 billion if the cap is implemented.

via CNN Money Addresses Swipe Fees.