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Retailers Push Fed for Yet Lower Debit Fees

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alp227 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Nov-24-11 03:17 AM
Original message
Retailers Push Fed for Yet Lower Debit Fees
Source: NYT

Retailers won a big victory last summer when the Federal Reserve halved the fees that banks and credit card companies were charging them to process debit card transactions.

For some retailers, however, that was not enough. This week, trade groups representing retailers, convenience stores and grocers filed a lawsuit against the Fed, asserting that the boards debit fee rules still allowed banks to capture too much money from debit card purchases. The lawsuit was filed in United States District Court here.

The rule, which went into effect in October, was the subject of fierce lobbying by banks and retailers over what has grown to $20 billion in annual debit card transaction fees. Consumers do not pay the fees directly, but merchants have complained that rising fees in recent years have forced them to raise prices.

In a sort of Solomonic decision, the Fed approved a cap of 21 to 24 cents a transaction, down from an average of 44 cents that had been being charged. But the new fee cap was roughly double the 12 cents initially proposed by the Fed before banks and credit card companies pushed to raise it.

Read more: http://www.nytimes.com/2011/11/24/business/retailers-pu...
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msongs Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Nov-24-11 03:20 AM
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1. retailers should just tell customers to call their card provider to complain. nt
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sarcasmo Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Nov-25-11 01:14 PM
Response to Reply #1
13. Could a cash only retail establishment exist in today's credit card society?
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dkf Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Nov-24-11 03:21 AM
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2. Retailers should pass these savings down to the customer by charging less when using debit cards.
But they won't. Now it's the retailers scam.
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xchrom Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Nov-24-11 03:23 AM
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3. Recommend
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micraphone Donating Member (284 posts) Send PM | Profile | Ignore Thu Nov-24-11 03:33 AM
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4. Even 12 cents is a scam by the banks
Usury.

It's all done by computer. 'nuff said.
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quakerboy Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Nov-24-11 03:51 AM
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5. They better be careful
They get those fees lowered enough, and they will loose one of their edges over their smaller competition(bulk discount).
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Lasher Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Nov-24-11 04:17 AM
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6. Retailers should pass these charges directly to customers.
And that charge should be shown on the receipt. This would promote awareness, and hopefully would motivate consumers to do business with banks that charge less per transaction.
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Igel Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Nov-24-11 05:05 AM
Response to Reply #6
7. It's messy.
Retailers like the swipe-to-pay process because it's (a) fast, (b) easier to track, (c) reduces the possibility of theft.

So if you want people to show debit card fees, they should also show credit card fees as well as have a fee for the increased check-out time and any fees associated with larger bonds because the cashiers handle more cash.

For large purchases, increased check-out time fee is trivial. For small purchases, it's a larger percentage of the purchase.
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Lasher Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Nov-24-11 02:18 PM
Response to Reply #7
9. Now you're talking about justice.
These are good points you make, thanks.

While on that subject, let's consider first of all the banks who benefit from this same automation. All those years ago they achieved big savings when people started using ATMs instead of other types of transactions like cashing and depositing checks. Banks being the greedy pigs they are, it wasn't long afterward that they started hitting us with foreign ATM fees.

Today it's fees, fees everywhere. My bank started charging me a 'convenience fee' for online access to my checking account. I wonder why they don't pay me a convenience fee because I have my paycheck automatically deposited online.

I just noticed my bank hit me with a $3.00 fee on a savings account because I have less than $200 in it. And no interest on that savings account either.

I guess I can't blame the banks for charging whatever they can get by with. I blame my corrupt government for failing to regulate them.
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Devil_Fish Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Nov-25-11 03:23 AM
Response to Reply #9
10. Get your money out. Put it in a credit union. Most don't charge you fees at all.
As for the swipe fee, stores should simply add a fee for using your card just like most mom and pop gas stations, and even Arco (a part of BP). I don't personally shop at Arco any more because of the oil spill, but when I did, they simply told you that they were going to charge you an additional 45 cents. If you don't like it, pay cash.

D_F
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sarcasmo Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Nov-24-11 09:27 AM
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8. More banker extortion, just like loan sharks minus the leg breaking.
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bemildred Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Nov-25-11 10:57 AM
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11. We need to pay people to take money and spend it. nt
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defendandprotect Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Nov-25-11 12:25 PM
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12. And what about the THEFT of the credit card interest rates -- ?
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