Merchants Win

Merchants Win - ;House, ByMiguelBustillo 20June2010...

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Merchants Win Debit-Card Fee Battle; House, Senate Agree to Give Fed Oversight of Processing Charges,  Which Could Save Stores Billions   By Miguel Bustillo  20 June 2010 The Wall Street Journal (Online and Print) Retailers stand to reap billions from the financial-overhaul legislation being finalized by Congress this week,  possibly giving them a long-sought victory by slashing the "swipe fees" that credit-card companies charge  merchants for every debit-card transaction. Members of the House and Senate announced an agreement Monday to include the debit-card fee cuts in the final  version of the overhaul bill—a loss for the financial industry, which had mounted a furious campaign to eliminate or  water down the proposed regulations. Though it is unclear how much the estimated $20 billion a year in debit-card fees paid by U.S. merchants would be  reduced under Congress's proposal to have them regulated by the Federal Reserve—or what impact consumers  might feel—some experts believe they could be cut by half or more, saving Wal-Mart Stores Inc. alone, the world's  largest retailer, hundreds of millions annually. Retailers, restaurateurs and gas-station owners have long complained about the so-called interchange fees  charged by banks for Visa Inc. and MasterCard Inc. debit cards, which average roughly 1% to 2% of the total  transaction amount—far more than similar fees to process paper checks. Such fees are regulated in dozens of 
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This note was uploaded on 01/30/2011 for the course 620 300 taught by Professor Gordon during the Spring '10 term at Rutgers.

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Merchants Win - ;House, ByMiguelBustillo 20June2010...

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