WINNERSLOSERSRetail shoppers2 of 19The financial reform act limits the "swipe fees" that credit card companies charge merchants every time a customer uses a debit card. These fees have been passed on to consumers in the past."In effect, you had a sales tax being imposed on purchases in general because, obviously, (merchants) are passing that on," says Dean Baker, co-director of the Center for Economic Policy Research in Washington, D.C. Baker expects much of the savings that retailers realize on reduced swap fees to make their way back to consumers in the form of lower prices.« Back to Financial Regulation. Related Articles:Fed's monetary policy toolboxHelp for mortgage borrowers?Financial meltdown: Credit cardsHow safe is your bank?Related Links:Types of banking institutionsSafe places for cashHow the economy affects youCommon mistakes in a bad economy advertisement
The financial reform act limits the "swipe fees" that credit card companies charge merchants every time a customer uses a debit card. These fees have been passed on to consumers in the past.
"In effect, you had a sales tax being imposed on purchases in general because, obviously, (merchants) are passing that on," says Dean Baker, co-director of the Center for Economic Policy Research in Washington, D.C. Baker expects much of the savings that retailers realize on reduced swap fees to make their way back to consumers in the form of lower prices.
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