Debit Fee Reform Delay Loses in Senate - Other News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most 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. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Debit Fee Reform Delay Loses in Senate

Debit Fee Reform Delay Loses in Senate

Debit Fee Reform Delay Loses in Senate
The content is accurate at the time of publication and is subject to change.

While merchants have been lobbying for the new swipe fee laws to pass, banks have been lobbying Congress to delay the passing of the new laws. The decision came in on June 8th, when a Senate vote came in short of the 60 votes needed to delay the implementation of swipe fee reform. It is a huge victory for small businesses and for consumers.

The vote was a big blow to large banks, which had put forth an intensive lobbying effort in support of the delay. The vote came in at 54-45 and the House of Representatives is now expected to vote down the amendment to delay as well. The Federal Reserve will have until July 21 to implement the final rule on capping the fees.

The Law

According to Senator Bob Corker (R-Tenn.), who with Senator Jon Tester (D-Mont.) co-sponsored the amendment in favor of delaying the swipe fee reform, “The people have spoken. This was a tough fight … I apologized to my colleagues non-stop for causing them to have to be involved in this.”

Quite frankly, Senators portrayed a stuck-in-the-middle feeling. Most shared that whichever way they voted, one important constituency would come out on the losing end. Senator Tom Carper (D-Del.), a backer of delaying the swipe reform program, said, “They don’t want to choose between their two favorite children.”

Fees and Charges

According to Huffingtonpost.com, banks rake in about $16 billion a year from swipe fees they charge merchants for accepting debit card payments from consumers. Of the $16 billion, $8 billion of this money goes to only 10 banks. According to merchants, if they did not have to pay the excessive swipe fees then the stores could lower the prices that consumers pay. Nevertheless, not all of the savings are expected to go back into consumers’ wallets.

Under current policy, banks have been charging merchants an average of 44 cents per transaction. That is based on the current schedule of charging a swipe fee equal to 1%-2% of the transaction. After the implementation of the new law, the cap on transaction fees will be a flat 12 cents per transaction. Banks and credit unions which have less than $10 billion in assets will, however, be exempt from the new rules and allowed to charge higher fees.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

New CENTURION Lounges in London and Charlotte

Posted: December 7, 2018

Travelers who pass through Heathrow airport when heading to London and Charlotte Douglas International Airport in North Carolina may well be happy to learn that American Express is opening new Centurion Lounges in both these airports. ... Continue reading
Mastercard Sets up Shop

Posted: December 6, 2018

MasterCard is rolling out their own online store, offering visitors a 3D platform, where they can shop just like they would in a brick and mortar store, using virtual technology. This way they can get the feel of real-time shopping while ... Continue reading
Data Breach at Marriott Affects 500 Million Starwood Guests

Posted: December 5, 2018

If you have stayed at a Starwood hotel you might want to keep an eye on your credit report because Marriot has announced that the Starwood guest reservation system was breached. Reportedly, this hack may have compromised the personal ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com and more up to the quarterly maximum, each time you activate.
For Excellent, Good Credit
INTRO OFFER: Discover will match ALL the Miles you've earned at the end of your first year, automatically. For example, if you earn 30,000 Miles, you get 60,000 Miles. That's $600 towards travel!
For Excellent, Good Credit
Earn 2% cash back on purchases: 1% when you buy plus 1% as you pay
For Excellent, Good Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!