Debit Card Fees: Senate discusses limiting swipe costs

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Lawmakers on both sides of a battle over debit card fees used populist-style appeals on Wednesday as the Senate neared a vote on whether to block a Federal Reserveplan to lower the fees that stores must pay banks each time a shopper swipes a debit card. Financial institutions and their supporters on Capitol Hill have been fighting a Fed proposal to cap, at 12 cents, the fee stores must pay the banks each of the 38 billion times that shoppers use debit cards every year. Those fees currently average about 44 cents per swipe, transactions that earn banks and credit card companies $16 billion a year, the Fed says.

With a showdown voted slated for later Wednesday, the Senate’s chief proponent of lowering the swipe fees, Sen. Richard Durbin, D-Ill., said that taxpayers had helped banks “in their darkest hour,” a reference to the $700 billion financial industry bailout of 2008. He said banks showed their gratitude by showering huge bonuses on their executives. For more information check out the full article regarding Debit Card Fees by clicking here. Also for a free Philadelphia area insurance quote visit our website today at http://www.kimberleyvassal.com

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