USA TODAY: The Federal Reserve told Congress on Thursday that it hasn’t settled on its proposal to limit the fee banks charge merchants for debit card transactions to 12 cents per swipe, latest twist in a battle over billions of dollars.
The financial overhaul bill that President Barack Obama and Congress enacted last summer ordered the Fed to issue rules that would set the fees at a reasonable rate. Currently, merchants typically pay between 1% and 2% of the transaction’s total…..
The Fed’s proposed 12-cent cap would be a major victory for merchants, who say higher fees are hurting their businesses and their ability to create jobs. Banks say cutting the fees would cause them to lose money and force them to raise their fees for checking accounts and other services… (more)
EDITOR’S note: The banks position flies in the face of Economics. But big business with its ability to make huge campaign contributions always wins.
