How Wal-Mart Swiped JPMorgan in $16 Billion Debit-Card Lobbying Battle – Bloomberg

June 30, 2011

Retailers have long fumed about the cost of taking plastic. Unlike with checks, banks charge them fees, known as interchange, to process debit and credit card payments. Debit fees average 44 cents per transaction or about $16 billion a year. The amounts are set by Visa and MasterCard, which own the payment networks and pass the money to the banks.

via How Wal-Mart Swiped JPMorgan in $16 Billion Debit-Card Lobbying Battle – Bloomberg.


The PR Mastermind Who Coined the Term ‘Swipe Fees’ – Bank Think #SwipeFees

June 30, 2011

West is widely credited in retailer circles with having coined an alternative, “swipe fees.” It caught on, and eventually became a rallying cry for Senator Richard Durbin, the Illinois Democrat who successfully pushed for a cap on debit interchange rates in last year’s Dodd-Frank financial reform law. This afternoon, bankers will find out exactly how much they will be permitted to charge on debit transactions when the Federal Reserve Board issues a final rule implementing the Durbin amendment. (Credit card interchange was unaffected.)

via The PR Mastermind Who Coined the Term ‘Swipe Fees’ – Bank Think.


Fed Caps Debit Card Fees for Merchants – NYTimes.com #swipefees

June 30, 2011

The new fee schedule includes three parts: a maximum interchange fee of 21 cents; a 1 cent addition that is allowed if the bank issuing the debit card develops a fraud-prevention program; and a variable charge of 5 basis points, or five one-hundredths of a percentage point, of the value of the transaction to recover a portion of fraud losses

via Fed Caps Debit Card Fees for Merchants – NYTimes.com.


NACS Calls Fed’s Final Rule ‘An Irresponsible Abdication of Its Legal Duty’ | NACS Online > News & Media Center > News

June 30, 2011

The final rules issued today set a per-transaction debit swipe fee of 21 cents, which is significantly higher than the Federal Reserve’s originally proposed rate of 7 cents or the compromise rate of 12 cents. The rules also add 0.05 percent of the transaction amount for fraud prevention.

via NACS Calls Fed’s Final Rule ‘An Irresponsible Abdication of Its Legal Duty’ | NACS Online > News & Media Center > News.


Editorial | Debit card fee cuts | The Courier-Journal | courier-journal.com

June 23, 2011

Retailers bear the initial brunt, but the swipe fees are passed on to the consumer in the end. NPR reports that banks make about $16.9 billion a year from these fees. The 12-cent cap would decrease that amount by $12 billion.

via Editorial | Debit card fee cuts | The Courier-Journal | courier-journal.com.


Fed Sets Vote on Debit-Card Fee Curbs – WSJ.com

June 23, 2011

The Federal Reserve next week is scheduled to vote on its final plan to regulate debit-card processing fees, giving banks and credit unions their first look at new fee curbs set to take effect next month. The public meeting is slated for the afternoon of June 29, according to a meeting notice the Fed released Tuesday afternoon.

via Fed Sets Vote on Debit-Card Fee Curbs – WSJ.com.


Merchants Shred Costs of Payments by Plastic – SmartMoney.com #swipefees

June 21, 2011

As part of last year’s Dodd-Frank financial-overhaul law, debit-card fees will drop about 75% on July 21. The Federal Reserve, which is issuing the interchange-fee rules, has proposed capping fees at about 12 cents per transaction for large banks, down from the current average of 44 cents. The Fed hasn’t announced the final figure yet.

via Merchants Shred Costs of Payments by Plastic – SmartMoney.com.