Credit Card News
Advertising Disclosure is an independent, advertising-supported web site. receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » News » Other » Debit Card Changes Provoke a Political Hailstorm

Debit Card Changes Provoke a Political Hailstorm

Add to Favorites:
Debit Card Changes Provoke a Political Hailstorm

Hidden swipe fees are about to take a dive and banking lobbyists are not going down without a fight. Banks and credit card companies claim that they will be unable to give debit cards to their customers because the fees collected provide them with the means necessary to supply the cards in the first place. If hidden swipe fees are eliminated, these industries will suffer tremendously. Or, at least they seem to think so. Merchants, on the other hand, differ in opinion.

Despite the adamant opposition being made by financial institutions and credit card companies to the changes in legislature, merchants find themselves feeling a sense of relief. In July 2010, businesses learned that the fees associated with their running of credit and debit cards will be reduced significantly. This was just what these individuals wanted to hear in hard economic times. Fewer fees equal more money in their bank accounts. More money equals better opportunities.

It’s not a far stretch to see why these changes are at the height of many heated discussions. When the banking lobbyists tried to make their move in July to change things, Congress would not budge an inch. The fees will be set to change as early as April 2011. Merchants will soon rejoice over their victory.

Even with an April deadline, card companies and banks are hoping for the fee reductions to be revoked or, at least delayed. It seems to me that they want to buy time so that they can try to change some minds in Congress. Only time will tell whether or not they are successful in their attempt. It does not appear that things are in their favor. Perhaps that is explains why, these institutions continue to grasp at straws by soliciting help from some political allies.

With guns a’blazing, the banks and credit card companies have hired big names to represent them. According to the New York Times, former advisors to Representative John A. Boehner and Representative Steny H. Hoyer are onboard.

The retailers have some heavyweights of their own lined up in their corner of the ring. Senator Don Nickles of Oklahoma along with the former chief of staff for Christopher J. Dodd, who is the head sponsor of the Credit Card Accountability, Responsibility, and Disclosure Act of 2009 has also agreed to participate and be supportive. The teams being assembled are sure to get some attention. 

All of the effort is in vain, however, because it does not look like the fee reductions will be changed anytime soon. No matter how much they oppose the new legislature, the ball has been set in motion. The banks are losing the battle. The Fed just have not been able to accept it for what it’s worth. If the companies in question are unable to charge fees to earn a profit, they may go to extremes. 

This poses a whole new set of questions. In fact, banking customers are left wondering if the banks and card companies will invent new kinds of fees to charge to make up for the losses that they will incur from the lack of hidden swipe fees. If they can’t stick it to the merchants, cardholders are the next best thing.

Add to Favorites:

Related News:

New Credit Card by Amazon and Chase

By Dar Dowling, Posted: January 19, 2017, Inc. and Chase have joined together to roll out the new Amazon Prime Rewards Visa Signature Card offering 5% back on all purchases. Continue reading
Wix and Square Team Up to Make Payments Easier

By Dar Dowling, Posted: January 18, 2017

Wix, a cloud-based web development platform letting people set up a wide range of websites, is teaming up with Square to provide merchants and entrepreneurs a new method of taking payments for products and services bought online and in ... Continue reading
United’s MileagePlus Loyalty Program Voted Best

By Dar Dowling, Posted: January 17, 2017

Have you ever wondered what rewards program are trending with world travelers? Well, if you have, the word is out United's MileagePlus loyalty program scored the title of Best Overall Frequent Flyer Program for 2016 in Global Traveler. Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Unlimited 1.5x rewards on every purchase, every day. For every $1 you spend, you earn 1.5x Miles.
For Excellent, Good Credit
You could turn $200 into $400 with Cashback Match™. We’ll automatically match all the cash back you earn at the end of your first year. New cardmembers only.
For Excellent, Good Credit
Guaranteed $500 Unsecured Credit Limit
For Bad Credit