Senate votes to let Fed lower debit card fees

Jun 08, 2011

The Senate voted today to let the Federal Reserve lower debit card fees as merchants triumph over banks.

At issue is a Fed proposal that's set to take effect next month and would cap the fees at 12 cents per transaction, compared with the current average of 44 cents per swipe.

Senators who wanted to block the Fed's plan needed 60 votes to prevail, but came up six short at 54-45.

The Fed says the current transaction fee earns banks and credit card companies $16 billion a year.

Stores say the lower swipe fees will let them lower their prices. Banks say they will have to raise other fees, such as checking account fees.

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