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02-23-2017, 01:48 PM #1
Debit Card Fee Caps Under Attack
In a bid to help banks, there is now legislation to reverse the "Durbin Amendment", which capped debit card fees.
Before the cap, average fees were $0.051 per transaction. Today, those fees are $0.0235.
Of course, banks have found all sorts of other fees to try to make back on that lost income. But since merchants claim to have passed on most of the savings to consumers, the general public probably has been a net beneficiary of this fee cap.
I am definitely going to be watching out for this one.Current Fico Scores: 710 TU, 732 EQ
My Goal for 2016: 750+
02-23-2017, 05:11 PM #2
I do not believe the argument that reduced debit card fees were passed on to consumers. I think retailers charge consumers a rate based on percentage who pay by cash vs. debit cards vs credit cards, and the average fee incurred with each type of transaction. Since credit cards are still the prevalent payment method, we end up with an approximate 2% charge added to all transactions, from everything I read.
On the flip side, back fees are up for everyone.
So no real savings, lots more real costs.
02-24-2017, 09:56 AM #3
shouldn't we just consider ending rewards cards, and lowering the fees for both debit and credit cards. you'll still need to account for fraud, so it cannot be lowered to near zero. but the overall savings for society will be huge.