The Fed Proposes a $0.21 Swipe Fee for Debit Cards & Visa Stock is up 11%Submitted by bobbyw24 on Wed, 06/29/2011 - 15:25
WASHINGTON — The Federal Reserve is poised to limit the fees that banks can charge retailers for swiping debit cards to 21 cents, a higher cap than initially proposed.
Banks succeeded in convincing the Fed that its initial cap of 12 cents was too low after six-month lobbying blitz. They currently charge retailers an average of 44 cents per swipe.
The Fed will formally adopt the rule Wednesday. It takes effect Oct 1, later than expected.