Page 3 - Swipe Fee News Today

Business. >> if that is the case, what is the bank going to do? either get out of the debit card business entirely or charge for checking accounts or charge for other areas of bank services. >> reporter: the law exempts banks with assets less than $10 billion from the cap. that concerns john tester who says it will drive business away from the smaller banks to the bigger ones with the slower typ -- lower swipe fee. >> if we dont do this study it will result in fewer banks more consolidation and ...

>> we need new tax source and one, i would put a transaction tax on wall street. we have massive churning of stocks and derivatives and bonds and everything else. a swipe fee like they put on credit cards every time that one of these trades occurs 1 every 10 milliseconds. thats second thing. second need a consumption tax. and third, let the bush tax cuts expire. if you put those three things together you can get the $200 to $300 billion of revenue that we need, match that with the spending cuts ...

The current average closer to 44 cents. now, merchants say that swipe fees cost them around $20 billion in profit a year. while banks say that new reform is is going to be lost billions of dollars of profit for them and the american consumer is caught in the middle. >> what about the credit card? what about credit cards? theyre still hanging on? >> theyre hanging on to the rewards. the key here is the reform that the feds looking at doing is the swipe fee and it is debit cards. we saw it tied to...

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Latest updates on this topic.