Posted on 07/02/2011 11:23:11 PM PDT by Rabin
The average swipe fee in America is 44 cents, the highest rate in the world. The Federal Reserve said that banks could make profit 12 cents per transaction and under the Dodd-Frank "financial reform", planned to enforce this cap starting yesterday.
Fed, Dod, Fagot Barny, TC Gaitner, Gentle Ben B, Sen Tester (D-MT)....
Rab can but but wounder how this mixed bag of snakes and salamanders comes about in the light of day.
Conserv can but but could make profit if understood what said Rab.
The only thing I say is!!! Government stay out of this the Banks must be able to make a profit and you will just spoil it for the consumers!!!!
Converting to the cashless society will have a few problems.
I heard about this, but would certainly appreciate a link.
“Government stay out of this the Banks must be able to make a profit and you will just spoil it for the consumers!!!!”
No...banks are making it hard on businesses to be able to keep offering charge cards as an alternative to cash.
The swipe fees hurt businesses, and ultimately the consumer.
It doesn’t cost me anything to use a credit card, it costs the business 3%.
Government price controls don’t work.
It doesn’t cost me anything to use a credit card, it costs the business 3%.
Please. You really think the businesses, who frequently only make a 5% return on stock, swallow the fee out of the kindness of their hearts? You pay the fee through higher prices.
Sorry, that is something that always bothers me!
People that pay cash pay for the higher prices if the business charges the same for cash or credit.
If the business charges more for credit, gas stations, I pay cash.
Pay cash.
Start everywhere, from the gaspumps to fastfood to grocery etc.
Use your debit card once a month to pull out enough cash for the month.
You get the picture.
That does seem to be the sensible direction to take.
“I heard about this, but would certainly appreciate a link.”
Here’s a June 29th article from the NYT(not my favorite paper)http://www.nytimes.com/2011/06/30/business/30debit.html?_r=1&;
The cap was mandated last year in the Dodd-Frank financial regulation law, but the Fed action was far less draconian than bankers had feared. The new cap of 21 to 24 cents a transaction, down from an average of 44 cents before the law passed, is roughly double the 12 cents tentatively proposed by the Fed last December.
Could somebody remind me again why cash isn’t good enough?
Because the govt can’t track you and your spending if you use cash.
The government doesn't like for you to use cash. If you keep enough cash to not have to go to the bank, they'll take it because you might be a drug dealer.
I have never even owned a swipe card. I use cash or my credit card. I have never experienced the need for a debit card— especially when they want to charge me so much to use my own money.
One of the absolute worst on fees is Fifth Third Bank based in Cincinnati. There motto is “Working Hard to be the Only Bank You’ll Ever Need.” But in their marketplace it is generally accepted that their true motto is “Working Hard to be the Only Bank You’ll Pay a Fee”.
Their entire operations system is intentionally designed to manipulate deposits and withdrawals in such a way as to maximize the opportunities of fee driven transactions. Their motivation to drive up fees is beyond fetishistic.Their entire culture is indoctrinated on it.
Actually, I'm not aware of any direct fee I pay whenever I use my cards within the US: credit for most things and debit at an ATM.
But let's say there were such a charge and that my average card purchase is $30. Here in NJ the government would demand an immediate payment of $1.80 to THEM. It's hard for me to understand how people can get so worked up over the 44 cents and ignore the $1.80.
ML/NJ
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