SmartMoney Blogs

Pay Dirt
A daily look at what we buy, how we spend, and the companies that do right - and wrong - by their customers.

Banks Get a Break From the Fed. Will You?


Every time a consumer uses a debit card at a store, the retailer pays the card issuer. That fee – called a swipe or interchange fee – was supposed to drop from about 44 cents to 12 cents on July 21, according to recent government regulations. But yesterday, the Federal Reserve softened its position: the fees will still drop, but only to around 24 cents.

No one’s happy. Consumer advocates expected the fee to be lower. So did the retail industry. The banking industry, which is the relative winner, says the Fed’s decision recognizes the range of debit-card costs they incur, but they still think the swipe-fee cap is too low.

Here’s our question: In anticipation of the more austere fee restrictions, banks have been raising fees on bank accounts and slashing debit card rewards programs to offset what they say will be the loss in revenue. So now that that’s not going to be so bad, are they going to roll back the new fees?

Not likely. The American Bankers Association points out that this final rule still represents a 45% loss in revenue that banks use to provide low-cost accounts, fight fraud and to maintain payments systems. The new debit-card interchange fee is still low enough that banks are going to feel it, says John Ulzheimer, president of consumer education at SmartCredit.com, a credit-monitoring site. “I certainly don’t think this will change banks’ strategies.” To the contrary, he says consumers can expect to see more fees popping up on their bank accounts, debit cards and elsewhere.

And credit unions – which have historically offered low fee banking options and served as a popular alternative for consumers to the large banks — are now preparing to roll out their own changes as well. They’re considering higher fees on checking accounts and possibly cutting back on services, says a spokeswoman for National Association of Federal Credit Unions. A NAFCU survey earlier this year found that nearly 65% of credit unions are considering eliminating free checking to help mitigate lost revenue from the new debit card rule.

The Fed’s decision today also delays the implementation of the new swipe fees from July 21 to October 1. (Note: Banks have not delayed raising fees.) In theory, retailers were supposed to start passing along their new savings to consumers starting next month. But given today’s announcement the retail industry now says those savings will be smaller than anticipated. “Retailers can only pass on what they get,” a spokesman for the National Retail Federation says.


We welcome thoughtful comments from readers. Please comply with our guidelines. Our blogs do not require the use of your real name.

Comments (5 of 13)

View all Comments »
    • By WebOsPublisher

      Access Iconz Explorer download,Access Iconz Explorer crack,Access Iconz Explorer serial,Access Iconz Explorer keygen,Access Iconz Explorer 2007,Access Iconz Explorer rapidshare,Access Iconz Explorer iso,Access Iconz Explorer ddl,Access Iconz Explorer full,Access Iconz Explorer release,Access Iconz Explorer dvdrip,Access Iconz Explorer cd,Access Iconz Explorer nocd,Access Iconz Explorer rar,Access Iconz Explorer zip,Access Iconz Explorer patch,Access Iconz Explorer torrent,Access Iconz Explorer p2p,Access Iconz Explorer usenext,Access Iconz Explorer free,Access Iconz Explorer key,Access Iconz Explorer 0day
      Access Iconz Explorer Free Full Download, Access Iconz Explorer Warez, Access Iconz Explorer Rapidshare, Access Iconz Explorer Megaupload, Access Iconz Explorer Crack, Access Iconz Explorer Serial, Access Iconz Explorer Keygen, Access Iconz Explorer Torrent
      ACCESS ICONZ EXPLORER Download Free Crack Serial Keygen Torrent
      Rapidshare Megaupload Download notice: Access Iconz Explorer warez, Access Iconz Explorer crack, Access Iconz Explorer serial, Access Iconz Explorer full – may give false results or no results in search terms.
      Access Iconz Explorer
      Private Members Only can download any version of Access Iconz Explorer for free.
      Rapidshare Megaupload Download Links
      You should be authorized to view Access Iconz Explorer download links. Latest update: Friday, December 7, 2012
      Download Crack: Download Access Iconz Explorer Crack
      Download Serial: Download Access Iconz Explorer Serial
      Download Warez: Download Access Iconz Explorer Warez
      Download Torrent: Download Access Iconz Explorer Torrent
      Related for Access Iconz ExplorerFile SizeDownloads
      Magic Explorer Controls 1.0.3
      0.24 MB
      820 Times
      UFS Explorer 1.3
      0.20 MB
      1540 Times
      Any to Icon 3.33
      1.05 MB
      1580 Times
      Stock Explorer 1.2
      19.7 MB
      1660 Times
      ABF Internet Explorer Tools 1.2
      1.07 MB
      2160 Times
      WebSpeedReader 7.5.26
      1.54 MB
      1960 Times
      Universal Explorer 4.2
      2.45 MB
      520 Times
      Advanced Internet Kiosk 6.11
      7.68 MB
      1360 Times
      aSkin 1.0
      0.54 MB
      1920 Times
      N-Tier Data Access
      0.98 MB
      1800 Times
      Magic Basket 1.41
      0.68 MB
      620 Times
      X2Net BrowserPal 1.00
      2.11 MB
      580 Times
      Offline Explorer Enterprise 3.5 SR1
      2.30 MB
      1240 Times
      Gogo Explorer 1.34
      1.02 MB
      1800 Times
      MMD Explorer 1.6a
      0.34 MB
      540 Times
      Active Folder 1.0
      0.65 MB
      600 Times
      Handy Password 4.5
      2.6 MB
      1880 Times
      Internet Access Scheduler 2.0
      0,76 MB
      1140 Times
      Windows File Explorer 0.5.4
      1.90 MB
      1060 Times
      Chili FTP
      2.01 MB
      1040 Times
      IERescuer 1.2.22
      0.30 MB
      1140 Times
      Magellan Explorer 3.20
      4.28 MB
      660 Times
      FolderBox 1.00
      0.80 MB
      440 Times
      PopUp Burner 1.00
      0.5 MB
      2040 Times
      Internet Explorer Tools 0.9
      0.15 MB
      780 Times
      Internet Explorer Password 1.3
      0.56 MB
      1240 Times
      Folder Guard XP Edition 7.2
      1.2 MB
      1080 Times
      Icon to Any 3.11
      0.68 MB
      4120 Times
      Access-to-Oracle 1.3
      0.5 MB
      920 Times
      PlanetRemote Plus 2.01
      10.37 MB
      1160 Times
      NetMarks Manager 3.0
      4.23 MB
      1340 Times
      ABF Favorite Folders 1.31
      0.82 MB
      1020 Times
      HotBar 3.05
      1.04 MB
      1360 Times
      ZipWorx Explorer 2.0
      3.07 MB
      1160 Times
      axExplorerCombo 1.0
      0.71 MB
      1100 Times
      Related Downloads at Rapidshare Megaupload…
      filesAny changing, any Access aha, icon magnifier jpg, Ext images Controls, windows save bmp, Explorer form, BrowserPal forms UFS, automatically Access internet, extract user, filler block, Universal fill filesAny, bitmap convert image, windows access magnifier, wap utility, abf BrowserPal MMD, UFS Linux, convert Password, convert settings, password Windows aha, jpeg Data Linux, refresh picture, convert browser Icon, fill wap, tiff Tools, Basket public png, cur wizard Icon, BarcodeNET 5, SkinCrafter 3.0.0, Speller 3.0.4, Easy Compression Library 3.51, Teroid Needle Gauge 3.6, DbControl 2,
      © 2012 I Search For Files
      We are not providers of warez, cracks and serials. Only links to other content.
      Powered by TurnkeyCentral.com

    • By WebOsPublisher

      Save And Preview Icons Won’t Work :: Forum :: Indexhibit
      CMS 2
      Email Address
      Created by:
      Daniel Eatock &
      Jeffery Vaska
      Built with Indexhibit
      save and preview icons won’t work Forums » Installation
      Indexhibit version: LegacyThread is not resolved.
      021077 LAOS2 year(s) agoPermalink Post
      Hi Vaska,
      already tried 3 different browser on two different computers (mac and pc). Flushed the cache, etc… reinstalled the script as you suggested, still nothing.
      Indexhibit suddenly stopped working after I created a new entry, the save and preview icons don’t work.
      I didn’t change a thing before this “glitch”, it’s definitely weird.
      Any suggestion?
      021077 LAOS2 year(s) agoPermalink Post
      update: completely reinstalled the script from scratch using a new database but the problem persist. :(
      021077 LAOS2 year(s) agoPermalink Post
      okay, now this is interesting… if I try to change the name of an entry I get this:
      Failed to save value:
      403 Forbidden
      You don’t have permission to access /index/ndxz-studio/
      on this server.
      Apache/2.0.51 (Fedora) Server at example.com Port 80
      Vaska AUNITED STATES2 year(s) agoPermalink Post
      Did you only recently purchase your domain? This is either a new domain/caching issue or you have some odd permissions on files.
      021077 LAOS2 year(s) agoPermalink Post
      I just recently changed my server’s error page 404, 403, etc… however, the problem was pre existent. Spoke with the host and apparently they fixed the save/preview problem, gotta find what they did now!
      Vaska AUNITED STATES2 year(s) agoPermalink Post
      Very strange…
      021077 LAOS2 year(s) agoPermalink Post
      yeah, it was the security module blocking that script!!!
      Showing 1 – 7 of 7 posts in Forum » Installation » save and preview icons won’t work
      You need to be logged in to post.
      var pageTracker = _gat._getTracker(‘UA-575153-5′);

    • U.S. Where will be Bank Located ( How far from Campus ) Open Bank acnouct and earn Referral Bonus Deposit your DD, TC in bank acnouct Students Laptop Buying Guide Questions students will have after arrival in U.S. How to get

    • The latest version of the Fed’s final debit interchange rule has not changed much. It is still good news for retailers and bad one for issuers. It is also still bad news for consumers who are already feeling the rule’s side effects, even before it has taken effect. Anticipating lower revenues, banks have begun creating new or expanding existing revenue sources. As a result, free checking accounts are going away, new bank fees are being introduced and old ones increased, interest rates are being hiked, rewards are being slashed, etc.

      So the damage to consumers is already done and it will not be reversed, even if the Fed eventually decided not to change the interchange status quo after all. What we have here is a government-mandated redistribution of revenues from one industry to another, something it has no business doing. http://blog.unibulmerchantservices.com/debit-card-fee-limit-lifted-to-24-cents-consumers-will-still-pay-for-it

    • Seems like the problem here is that there are costs involved and neither the retailers nor the banks want to pay or them. I can’t blame them, since the goal of any business is to keep expenses as low as possible and to maximize income. No matter what happens, it’s the consumer who will end up paying.

About Pay Dirt

  • Pay Dirt examines the millions of consumer decisions Americans make every day: What to buy, how much to pay, whether to rave or complain. Lead written by Quentin Fottrell, the blog examines these interactions, providing readers with news, insight and tips on shopping, spending, customer service, and companies that do right – and wrong – by their customers. Send items, questions and comments to quentin.fottrell@dowjones.com or tweet @SMPayDirt.