Regulators Debate Limiting Card Fees

Lawmakers are now hesitant to move forward with proposed limits on debit card swipe fees.  When you buy something on plastic (whether it's a debit card or credit card), merchants pay fees to process your payment.

It looked like a maximum of 12 cents per transaction was all but decided, but the debate has heated up.  Pressure from banks and payment networks is forcing the Federal Reserve to reconsider how much is too much.

Regulators aren't sure what the unintended consequences would be given a 12 cent limit.  Banks would lose revenue; they may increase fees elsewhere, and smaller institutions may go out of business.  In addition, there's no guarantee that merchants will pass the savings on to consumers.

Further reading:

• Fed may reconsider plan to limit debit card fees