Senate Votes to Curb Debit-Card Fees

[babylonsister]

Senate Votes to Curb Debit-Card Fees

By GREG HITT And MICHAEL R. CRITTENDEN


WASHINGTON—The Senate, voting 64-33, moved Thursday to curtail the "swipe fees" that financial companies impose on debit transactions, a nod toward consumers that dramatizes the increasingly populist tint of pending legislation that would overhaul regulation of the financial-services sector.

Under the amendment offered by Sen. Richard Durbin (D., Ill.), the Federal Reserve would be authorized to regulate the fees charged to businesses by financial firms on debit cards, as well as empower merchants to offer discounts to customers if they pay with cash or check.

Critics contend the fees imposed on debits are far higher than the actual cost of processing those transactions, and annually impose billions of dollars in costs that are eventually passed onto consumers. Sen. Durbin complained the financial companies were imposing "outrageous" fees imposed on merchants and retailers, and has fought for months for the proposal.

"In a time of recession, when we need small businesses to step up and create jobs, this is a way to move forward," Sen. Durbin said.

more...

http://online.wsj.com/article/SB10001424052748704635204575242501678773926.html?mod=WSJ_latestheadlines

[Abq_Sarah]

1. I'm one of the few

Businesses in my area that doesn't accept credit cards/debit cards. Over the last 5 years, I've lost exactly one client because I wouldn't take a credit card.

[Skink]

3. These are the guys borrowing at zero percent from the fed right?

[Abq_Sarah]

5. Yep

They're not going to get a cent of my money in the guise of transaction fees, statement fees, etc...

[Mass]

2. I cant make sense of the Democratic NAYSs.

Even a large part of the Repubs voted AYEs. What is their excuse?

http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=111&session=2&vote=00149

NAYs ---33
Akaka (D-HI)
Baucus (D-MT)
Bayh (D-IN)
Carper (D-DE) )
Johnson (D-SD)
Kaufman (D-DE)
Lieberman (ID-CT)
McCaskill (D-MO)
Tester (D-MT)
Warner (D-VA)

[karynnj]

4. Some I understand Carper and Kaufman

- they are from the credit card state - and like Biden's used to their votes are awful on this issue. The rest are pretty confusing. Akaka is the most confusing as he is quite liberal. There are some pretty conservative Republicans that voted for it - like the two from Idaho. Weird mix