Mallory Duncan is Senior Vice President and General Counsel of the National Retail Federation (www.nrf.com), the world’s largest retail trade association whose global membership includes more than 1.5 million American companies that employ nearly 25 million workers. Readers may write him at NRF, 325 7th Street NW, Suite 1100, Washington, DC 20004.
Chase and Wells Fargo drop debit card fee tests; Bank of America set to adjust its plan – The Washington Post #swipeFees #OWSOctober 31, 2011
Signs like, “I bailed out the banks and all I got was a $5 debit card fee” have been spotted the Occupy Wall Street protest in New York and its sibling protests around the country. The author of the regulations, Sen. Richard Durbin, D.-Ill, called the fee an “outrage” on the floor of the Senate.
Next on the agenda will be reform of credit card fees, which are even more excessive than debit fees and just as obscure.
In 2010, the banking industry raked in about $30 billion in swipe fees on credit card transactions – over and above profits on late fees, annual fees, over-the-limit fees and interest. Not only do banks require merchants to collect fees averaging 2-3 percent of each credit card transaction, until swipe fee reform passed they effectively prevented retailers from offering a discount to customers who paid with cash.
Chase and Wells Fargo drop debit card fee tests; Bank of America set to adjust its plan – The Washington PostOctober 31, 2011
Chase and Wells Fargo are joining the list of banks that won’t be charging customers to use their debit cards, as the backlash over Bank of America’s planned $5 monthly fee continues.
“It appears that banks are seeking to justify fee increases after Congress and the Federal Reserve Board recently limited banks’ ability to collude with networks to set debit interchange fees,” the letter said. “Statements made by individual banks and their trade associations raise questions about whether some price increases that have occurred this year have actually been coordinated.”
“Merchants are counting their new found gains at our expense and our elected officials still don’t comprehend the damaging impact of their misguided legislation,” wrote Patrick J. Swanick, a retired KeyBank vice chairman and former president of Key’s retail bank and CEO of Key Electronic Services, on October 10 in the American Banker.
“Whenever there has been frustration or negative publicity with other institutions, the credit union is where people turn,” Williams said. She added that the credit union does not plan to implement any fees on their checking accounts.