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Poor, poor banks. How can they be expected to make any money if we don't let them continue to ripoff depositors?
A Stunning Development in the Swipe Fee Debate
The average swipe fee in America is 44 cents, the highest [2] rate in the world. In December, the Federal Reserve released an analysis saying that banks could still make profit by charging 12 cents per transaction, and under the Dodd-Frank financial reform, planned to enforce this cap starting today.
Yesterday, less than 24 hours before their rules were to go into effect, the Federal Reserve announced [6] it would cap the fees at as high as 24 cents, not 12.
http://www.thenation.com/print/blog/...ipe-fee-debate
Poor, poor banks. How can they be expected to make any money if we don't let them continue to ripoff depositors?
Typical lib thinking.
They want to cut the fee to $0.12 from the $0.44. Now, you are saying they are increasing the profits, when the $0.12 was never effective, but will still be cut to $0.24 maximum...
Sorry, but $0.24 is still a cut of $0.20 from the original $0.44.
Did you fail math in school?
And we bailed these ers out?
smh
, so is $0.43. We should have just capped it at $0.43! Cutting it to $0.24 is socialism!
So, instead of cutting it by $0.32, as originally planned, they get a bonus of $0.12... the math was always right.
If it didn't need capping it, it wouldn't have been part of the legislation. The whole point of the cap is to substantially reduce what banks make from those caps.
WTF?
Do you know what is on the table here?
It appears you guys don't.
What's on the table, maestro?
John Lennon would have never stood for this.
So is that going to be passed on to me in the form of lower costs at Best Buy or Wal Mart?
How do I go about getting my 24 cents per swipe back?
Try reading the article for a change instead of running your mouth like an ignoramus, WC. The banks make up their losses on debit card deregulation. Final analysis: no change.
Moving on... I guess I didn't pay enough attention in civics: how the does the Fed have the authority to override the Senate?
The $0.44 average is what the banks charge retailers per transaction. Capping it at $0.24 per transaction is a substantial loss in revenue to the banks.
Which is the point of the cap, substantially reduce that fee as a revenue source for the banks. That money has to come from somewhere. Normally it comes from retailers who pass it to consumers. THAT is the point of capping it.
Banks effectively are shifting an extra $0.12 per transaction to the consumer.
I think you should read it again.
I didn't see where is said debit cards are deregulated. It said the cap of $0.24 is above the average $0.23 for debit cards. The author said "basically freeing all debit card transactions from regulation." I read it just that they aren't being capped at the original intent of $0.12. The $0.12 would be almost a 50% cut from average. The $0.24 is effectively no cut. No where does it say they are being deregulated. Read the wording carefully.
No and Bull .
The $0.44 is already being cost shifted to the consumer. They are not shifting an extra $0.12 to the consumer, the consumer is just not saving as much as intended. The consumer is already effectively paying the $0.44.
It is still cheaper to the retailer, which can if he chooses, passes it on to the consumer.
if anyone makes money of this, it's the retailers.
This is a fee charged to retailers for their credit card swipe machines.
It's not that complicated brainiac. If the banks are racking it in, then it's not getting back to the consumers. At least if it goes back to the retailers, there's the actual possibility that the consumers catch a break.
The fact of the matter is that the actual cost to the bank is $0.08 per transaction. Meaning that the proposed $0.12 per transaction already included a 70% profit margin. A $0.24 fee is a 300% profit margin for the bank. (the old $0.44 was a 550% profit margin).
Who has those margins in today's economy?
I know all that. The cost shifting is already being done. The $0.24 is still a reduction. I have been responding to the OP le, "Fed gratuitously doubles $Bs in swipe fee profits." I did misunderstand your intent of the cost shifting in your previous post, because you said "extra" which implies more. The $0.24 is still less than the $0.44.
The hair you split makes sense.
Yeah, which is more than the $0.12 that the Fed analyzed was more than sufficient for the banks to turn a profit on the fees (I actually think 70% is already more than generous).
BTW, make that 21 cents, not 24 cents...
http://www.creditcards.com/credit-ca...cents-1282.php
Touché -- I do seem to have misinterpreted those passages. Hypocrisy is a !
"The $0.12 would be almost a 50% cut from average"
$0.12 is still 70% margin.
The Fed had tentatively said it would cap interchange fees at 12 cents per transaction, but insiders are saying that the fees could be set as high as 24 cents per transaction. The cap on the debit and credit card transaction fees is a portion of the Dodd-Frank Act, the financial reform laws that were passed in 2010. The card fee cap was mandated by the Durbin amendment to the Dodd-Frank Act, which will take effect on July 21.
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