Cashizslick
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Debit card spending limit? Banks consider a $50 cap - Mar. 10, 2011
The article then goes on to say that the banks are evil and greedy, totally missing the fact that, up until now, we have been able to use these cards for free.... now because of government regulation we will have to suffer.
Thank you Obama.
Why? Because of a tricky thing called interchange fees.
Right now, every time you swipe your debit card your bank charges the retailer an average fee of 44 cents, which it shares with its partners. Those little fees, however, add up to about $16 billion per year, according to 2009 data from the Federal Reserve.
But as part of the Wall Street reform legislation that was passed last year, these fees are being slashed. The Fed is currently proposing rules that would go into effect in July and would cap interchange fees at 12 cents.
That's a big enough cut to cost Chase (JPM, Fortune 500) more than $1 billion a year. And Chase may not be alone. Other major issuers are also projecting huge losses from the interchange fee cap.
The article then goes on to say that the banks are evil and greedy, totally missing the fact that, up until now, we have been able to use these cards for free.... now because of government regulation we will have to suffer.
Thank you Obama.