Senate backs large, small retailers seeking caps in banking overhaul bill
WASHINGTON - Retailers have begged Congress for years, in vain, to limit the fees they must pay to banks when customers swipe credit or debit cards. Bills never reached a vote. Amendments were left on the table. The Senate did not even grant the courtesy of a committee hearing.
That long record of futility ended in a landslide Thursday night. Sixty-four senators, including 17 Republicans, agreed to impose price controls on debit transactions over the furious objections of the beleaguered banking industry.
The amendment to the Senate’s sweeping financial legislation could save billions of dollars for family restaurants and dry cleaners, Wal-Mart and Amazon.com, and every other business whose customers increasingly pay with debit cards. It does not address credit card fees directly.
Consumers also could save money, particularly at businesses like grocery stores that compete on price. But some experts warned that lower profit margins could lead banks to curtail bank card reward programs.
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2 comments:
It's funny how banks and retailers make it difficult to use cash, and then charge to use plastic.
When you carry a debit card it is like taking you entire account with you wherever you go. If the card is stolen or used without your authorization there is no law that protects you from the loss.
Some banks may cover you, but they're not required to do ao.
DON'T USE DEBIT CARDS!
Don't use rewards cards, they jack up the price of everything. These cards cost the merchant 3.01%-4.10% versus about 1.5% for a standard visa/mastercard, or 0% + $0.17 swipe fee for a debit card.
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