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VOL. 126 | NO. 34 | Friday, February 18, 2011

Fed May Reconsider Plan to Limit Debit Card Fees

AP

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WASHINGTON (AP) – The Federal Reserve is telling Congress it may reconsider its proposal to limit the fee that banks charge merchants for debit card transactions to 12 cents per swipe.

The financial overhaul bill that President Barack Obama and Congress enacted last summer ordered the Fed to issue rules that would set the fees at a reasonable rate. Currently, merchants typically pay between 1 and 2 percent of the transaction's total.

The question of where to set the fees has triggered an intense lobbying battle pitting merchants and some consumer groups against banks and credit card networks.

In testimony prepared for delivery to the House Financial Services Committee on Thursday, Fed Governor Sarah Bloom Raskin says because the issue is so complex, the Fed is "reserving judgment" until it gathers more information.

Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 0 43 12,074
MORTGAGES 0 78 15,834
FORECLOSURE NOTICES 39 39 3,168
BUILDING PERMITS 292 292 29,124
BANKRUPTCIES 3 100 11,771
BUSINESS LICENSES 0 18 4,292
UTILITY CONNECTIONS 0 190 17,922
MARRIAGE LICENSES 0 43 3,711

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