Fitch Ratings estimates a lower swipe-fee cap could cost U.S. banks nearly $7 billion.
A court battle brewing between credit card companies and major retailers could end up costing American consumers. Five million retailers, including the likes of Payless ShoeSource, the National Association of Convenience Stores, and the National Restaurant Association, filed an antitrust litigation suit against Visa, MasterCard and 13 major credit card issuers. The suit alleges the
The all-out war between banks and retailers over the new federal rules that will restrict so-called interchange fees might not be over quite yet. That’s because U.S. Sens. Jon Tester (D-Mont.) and Bob Corker (R-Tenn.) have introduced a bill that would delay the government’s plan to “price-fix debit card swipe fees,” to use Tester’s characterization.
A furious battle over how much banks can charge merchants for processing debit card transactions is raging on Capitol Hill right now. The National Retail Federation has just announced a multimillion-dollar lobbying and advertising effort to ensure it gets its way. Giant corporations with billions of dollars on the line are pouring massive amounts of
Do you earn rewards each time you pay with a debit card? Better brace yourself for some changes. Cuts may be on the way to your bank’s debit card rewards program. A proposed cap on debit card interchange fees would seriously slash fee income for banks. And card industry analysts expect banks to curb or
On Thursday, the Federal Reserve proposed new rules that would set standards for interchange fees that merchants pay to banks when consumers make purchases with their debit cards. The proposal would implement provisions in the Dodd-Frank Wall Street Reform and Consumer Protection Act. The proposed rules, intended to set standards for determining whether a debit
Retailers say new government restrictions on interchange fees will save consumers money, based on the assumption that merchants will pay less to banks on consumers’ plastic money transactions and pass along the savings. And some economists and consumer advocates agree. Banks say the new restrictions will hurt their ability to offer reasonably priced banking products
The Senate voted to move forward with the Dodd-Frank Wall Street Reform and Consumer Protection Act, 60-38, and will likely begin a final vote around 2 p.m. today. Bankrate will be rolling out a series of articles detailing what the legislation means for you. On the credit side, the act would require companies that deny
This morning a House-Senate panel in charge of merging two financial reform bills into a final version reached an agreement. Both chambers of Congress still have to approve the compromise legislation, dubbed the Dodd-Frank Act after its main authors, Sen. Chris Dodd and Rep. Barney Frank, before it can go to President Barack Obama for
On Friday, Assistant Senate Majority Leader Dick Durbin, D-Ill., fired off a letter to the CEOs of the Independent Community Bankers of America, or ICBA, and the Credit Union Nation Association, or CUNA, countering their arguments against reform of interchange fees for debit card transactions. According to the Senator’s website, his amendment, which the Senate