Feds move on debit card fees
December 17, 2010 | alternatives | Comments (0)The Federal Reserve proposed on Thursday lowering the fees that merchants must pay when shoppers use debit cards, a move that could reduce retail prices but result in higher banking fees for consumers.
Under the recommended new rules, the so-called interchange fee, or “swipe fee,” on debit cards would be capped at 12 cents – about 70 percent lower than the average fee of 44 cents per transaction last year, according to the Fed. The total amount banks received from debit card interchange fees was $16.2 billion.
How did they conclude that 12 cents was the correct amount to charge for this service?
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