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The Fed will allow a base debit card swipe fee of 21 cents, higher than an initial proposed cap...

The Fed will allow a base debit card swipe fee of 21 cents, higher than an initial proposed cap of 7-12 cents. The new rule would go into effect on October 1. Visa (V) and Mastercard (MA) say "yes."  V +10.1%, MA +9.2%.
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Comments (4)
  • Mad_Max_A_Million
    , contributor
    Comments (1175) | Send Message
     
    This must be how communism got it's start. Next thing you know, they'll be telling you how often you need to change your underwear.
    Too many rules...
    29 Jun 2011, 03:59 PM Reply Like
  • Topcat
    , contributor
    Comments (490) | Send Message
     
    Actually it has become a critical issue for small businesses, as debit swipe fees varied from .20 to $1.25, and when merchants put up "minimum $10 purchase etc for cards" customers balk, as many people are not carrying cash anymore. Just had an article and interview with local merchants in the newspaper in the small town I live in. One card shop sold greeting cards at $3.25, (paid $2.30) and depending upon customer's bank, could get a $1.25 swipe fee. Crazy.
    29 Jun 2011, 09:42 PM Reply Like
  • kmi
    , contributor
    Comments (4315) | Send Message
     
    What interests me is this part in the linked article:

     

    " but the proposal specifically exempts the network American Express Co"

     

    Would love some clarity on this if anyone can provide it.
    29 Jun 2011, 04:10 PM Reply Like
  • Blackbeard
    , contributor
    Comments (112) | Send Message
     
    Amex's payment network operates in a slightly different way than Visa and Mastercard.

     

    American Express submitted the following explanation to the Fed earlier this year and it appears they agreed in today's ruling with some aspects: www.federalreserve.gov...
    29 Jun 2011, 04:45 PM Reply Like
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