16 December 2010

OK, Credit Where Credit is Due*

The Federal Reserve is proposing to slash swipe fees for debit cards, taking them from somewhere around 1½2% to something less than 12¢.

Of course this is just a proposal, so I am waiting for the other shoe to drop.

The full FRB releases (PDF) are here.

*Pun not intended.


Iain said...

I will believe it when I see it.  Visa has built an enormous empire based around ever higher swipe charges and passing some of that along to banks and other common card issuers.

I've had frequent conversations with small business about it, usually right after I go "ooops, I have cash, and I know that's better for you."

Pay small business in cash if you want them around.  Heck, Costco isn't small and they essentially force you to pay cash or use a form factor with lower swipe charges.

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