Credit Card Processing Fees Are On The Chopping Block

There is a congressional debate raging. Merchant are screaming about the “swipe fees” they get charged each and every time the customer uses his debit or credit card to pay for transactions.

The big banks like JP Morgan and Bank of America along with the likes of MasterCard and Visa and on the other the biggest retailers in the USA.

Did you know this is a $20 Billion industry and it could quit possibly come back to the retailers and therefore show lower consumer prices on items?

There are multiple scenarios being played out. Seems when a consumer uses his debit card, the funds come direct from his bank. No risk to the retailer so the fees are about a quarter of what the fee is when the consumer uses his credit card.

The current bill in front of the senate includes directions that the Federal Reserve would be required to set limits on the fees that the credit card companies and banks can charge.

The house bill has no requirement to set limits.

Both sides have effective lobbying in place, lawmakers will spend the next 2 weeks trying to merge the two bills in one workable solution.

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Posted by Jackie Cooke on Jun 13 2010. Filed under Featured News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry