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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 This material may not be published, broadcast, rewritten or redistributed.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 45 269 13,925
MORTGAGES 99 397 18,223
FORECLOSURE NOTICES 0 55 3,560
BUILDING PERMITS 0 430 32,733
BANKRUPTCIES 74 285 13,288
BUSINESS LICENSES 13 81 4,786
UTILITY CONNECTIONS 148 455 20,354
MARRIAGE LICENSES 24 96 4,293

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