Retailers and Banks have been colliding over proposed regulation that would impact the interchange fees charged by banks when consumers make debit card payments. In, April, as part of the financial-reform legislation passed last year, the federal reserve is due to finalize the rules that would cap these fees at 12 cents per transaction. The current average is approximately 44 cents per transaction. Both sides have been actively lobbying to protect their interests with retailers claiming that the current fees significantly cut into their earnings and ultimately hurt consumers. The banks maintain that if such an aggressive cap is enacted it will severely impact the financial viability of offering debit payment services. Last week, two bills were introduced into Congress that would essentially delay the ruling. Retailers are not pleased about a potential delay.
Read the Entire Article by Mark Hamstra of Supermakert News