On March 21 the US Appeals Court for the District of Columbia overturned a lower court’s July decision that ordered the Federal Reserve to recalculate and lower its 21-cent per transaction cap on the fees charged for processing a debit card payment. Retailers cheered that decision and expressed optimism that the so-called debit card swipe fee would be reduced to as low as 12 cents. This latest ruling means that the swipe fee cap will remain at 21 cents per transaction.
Tag: swipe fees
Swipe-Fee Rule Rejection Helps Merchants and Banks’ Cost
Before Federal Reserve regulations cut back on perks such as reward programs and free checking to soften the blow, Lenders collected about $16 billion annually from swipe fees. Unless overturned, the decision will force regulators to revisit rules that bankers said would cost them 45% of their swipe-fee revenue.
Community Banks Aren’t Hurt By Debit Card Fees
A provision in the Dodd-Frank Act originally had community banks worried. The new regulation would reduce the amount of money that larger banks could charge for debit card swipes by half. Targeting banks with assets of more than $10 billion, this meant smaller, community banks would be exempt from the regulation. According to a recent… Continue reading Community Banks Aren’t Hurt By Debit Card Fees