Debit card fee defeat for banks in Senate
June 8th, 2011
03:26 PM ET
3 years ago

Debit card fee defeat for banks in Senate

Washington (CNNMoney)- Despite intense pressure from banks, the Senate failed Wednesday to delay rules capping fees that banks charge retailers to process debit card transactions by consumers.

While the vote was 54 to 45 in favor, 60 votes were need to approve the measure. The legislation would have pushed back by a year the July 21 deadline by which the Federal Reserve must cap so-called "interchange" or "swipe" fees at 12 cents per transaction, down from an average of 44 cents now. Such a move could cost the banking industry more than $13 billion.

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Filed under: Senate
soundoff (16 Responses)
  1. Democrat Swamp Inspector

    So banks are reeling from huge real estate losses, as well as others due to the economy, and now the Feds want to reduce what they can make on transactions? If they do then banks will be forced to replace the lost income with other fees in order to remain solvent. Then I guess they'l move to play with those as well? The Feds desire to try and micromanage everything is doing nothing but causing problems for everybody.

    June 8, 2011 03:34 pm at 3:34 pm |
  2. Gothaze

    Boo who....banks losing money. Really. Who ever heard of such a thing. If you cant manage a 100 million transactions a day @ 12 cents per. And make a profit, Maybe somebody needs to back to Business School.

    June 8, 2011 03:45 pm at 3:45 pm |
  3. amy

    Could,nt happen to a more deserving bunch of "Greedy White collar CEO Criminals, who steal money from all of use!!!! They just find another Republican Loophole to continue their "Legal Theft" Republicans will make sure of that!!!! LOL

    June 8, 2011 03:46 pm at 3:46 pm |
  4. V in Chicago

    I'm sure the banks can afford the loss. Didn't they make record profits last quarter? We are being nickled and dimed to death out here. It's about time the little guy got a break. Just get your bank to try and work with you when you fall on financial hard times, even if you've been a loyal, on-time paying customer for years. It is criminal what is being done to the middle class in this country and the Republicans, if given their way, will continue to crush us until we are all serfs.

    June 8, 2011 03:48 pm at 3:48 pm |
  5. diridi

    now you know why I back Democrats....this is the reason...Banking industry is robbing....Go and vote Democrats direct ticket....obama2012...watch out, when you swipe debit cards...they charge....idiots...

    June 8, 2011 03:51 pm at 3:51 pm |
  6. Four and The Door

    It's usually better for everybody when market forces provide the pressure to keep prices down. But don't worry about the credit card companies taking too great a hit from this. They have so many ways to make up the difference.

    June 8, 2011 03:52 pm at 3:52 pm |
  7. Rudy NYC

    Thanks for tax cut! The fee was ridiculous to begin with. It adds to the prices charged at the cash register. The high fee is effectively a tax, one that goes straight to the banks. Since they could not justify the high price they charged, it has been removed. Sorry, but profit margin is not a reason. It's a motive.

    June 8, 2011 03:53 pm at 3:53 pm |
  8. Democrat Swamp Inspector

    Sounds like all the libtards in here would rather not have any banks, period. After all they are just greedy robbers right? I guess then you can pay cash for their homes and cars? (obtained from their imaginery jobs!)

    June 8, 2011 04:09 pm at 4:09 pm |
  9. LacrosseMom(real one)

    THANK GOD....... that the Banks wont be stealing from Shop Owners & Consumers ....... at least in this any more!

    June 8, 2011 04:13 pm at 4:13 pm |
  10. Michael

    The article say its will cost the banking industry 13 billion a year. ANother way to look at it that it will save other businesses and thier customers 13 billion a year that they could save or spend on products to help stimulate the ecomony.

    June 8, 2011 04:28 pm at 4:28 pm |
  11. Doug

    Banks are a private business, they are allowed to charge debit card fees. If you don't like it, go join a different bank, there are plenty that don't charge debit card fees. I love how people like to cry about banks being criminals and we need the government to intervene. Do a little research and make a decision for yourself for once!

    June 8, 2011 04:28 pm at 4:28 pm |
  12. XWngLady

    @Democrat Swamp Inspector: ROTFL!!!..."If they do then banks will be forced to replace the lost income with other fees in order to remain solvent.".... LOL! That is one of the most ridiculous statements that I have ever heard. These banks are STILL giving away bonuses, NOT lending to anyone and are making a profit. When they make these statements to you, you just eat it up. And believe every word they say. I'd like to see exactly what their expeditures and their intake is. How much is being paid to whom/what and for what reason. Until then, you have NO CLUE how this would affect them. Economic institutions should have enough capital on hand for the worst case scenario, and THEN anything beyond that can be considered profit....Hilarious!.........What banks mean to say is, "If the Fed reduces the amount of fees that we collect, then WE WILL CHOOSE to replace the lost income with other fees rather than to work to generate more clients or reduce the amount of money we spend on bonuses, marketing, lobbying, overhead or ((GASP)) accept a reduced profit margin (since we were gouging people to make the extra money anyway)."

    June 8, 2011 04:30 pm at 4:30 pm |
  13. The Real Tom Paine

    @Democrat Swamp Inspector

    Sounds like all the libtards in here would rather not have any banks, period. After all they are just greedy robbers right? I guess then you can pay cash for their homes and cars? (obtained from their imaginery jobs!)

    I guess they are similar to your imaginary facts, culled from your fevered hatred of anything or anyone that does not subscribe to your worship of John Galt and Ayn Rand.

    June 8, 2011 04:37 pm at 4:37 pm |
  14. The Real Tom Paine

    @Democrat Swamp Inspector

    Its astonishing to watch someone just leap to an ideologically-based conclusion with such speed. Obviously reality or real -life experience have never intruded on your venomous world-view, where liberals hate banks and anyone with money. Money is the reality of power in our society, I just don't want to see a self-appointed ammoral oligarchy control me any more than they already do.

    June 8, 2011 04:42 pm at 4:42 pm |
  15. Marie MD

    I almost had a stroke!!!
    @swamp – you are obvious not feeling the pain of the last 10 years.
    The banks already take more than they should. We, the people, bailed them out and got screwed in the process because, while gaining, my 401k and retirement money is not even close to what it was before the shrub's presidency allowed the big fat bankers to screw us!!

    June 8, 2011 04:58 pm at 4:58 pm |
  16. Democrat Swamp Inspector

    Good thing we have the Dems to look out for the people. Obama/Biden 2012

    June 8, 2011 05:04 pm at 5:04 pm |