Big banks relieved as Fed sets debit card rule

Under the new rules, the fee charged for the average debit card transaction of $38 would be capped at approximately 24 cents, the Fed said in a statement announcing its decision. Currently, the fee for an average debit card transaction is 44 cents. Banks had feared that the average fee would be cut as low as seven to 12 cents and mounted a fierce lobbying campaign to thwart the changes.

Lawmakers from President Barack Obama's Democratic Party had pushed for the debit card provision to help retailers and small businesses, which pay the transaction fees. The fees are typically not seen by consumers.

The American Bankers Association, which lobbies for the interests of large banks, welcomed the Fed's decision on Wednesday. "The Federal Reserve has taken a significant step in reducing the harm that could have resulted from the proposed rule," it said in a statement.

Shares of companies which process debit card payments surged after the Fed's decision was announced, with Visa stock skyrocketing by 15.0 percent and Mastercard rising 11.3 percent.

news.yahoo.com...

Another win for the banks!!!!!!!!!!!!

Someone made a truckload of money today..........

the banks fee went DOWN

this is good for small business

they just made .20 more on every cup of coffee

All I can say is thank god,

The banks havent been having the best time in the past few years and its about time they caught a break

double post

When banks first introduced computer banking in eg. atm etc. It was supposedly to make banking easier & convenient with no fees.

Now they have sacked many of their worker drones, saving them money, introduced ridiciulous fees for a service that should be free because you don't have to pay a computer wags, and god forbid if you want to commit the heinous crime of actually communicate with a real life human bank employee.

Just blantant excuses & lies to steal from the common man.

When it comes down to it

BANKERS ARE WANKERS

Originally posted by syrinx high priest
the banks fee went DOWN

this is good for small business

they just made .20 more on every cup of coffee

But it didn't go down as far as it could of. I believe that was the point of the OP.

The administration wanted it lowered to around 7 or 10 cents a transaction. The banks lobbied to have the reduction lessened.