Monday, December 20, 2010

What's bad for the goose is good for the gander

CSP News writes that the Federal Reserve, fulfilling a congressional order to examine whether merchants were being charged excessive fees to process debit-card transactions, has proposed new rules that analysts said could cut those fees as much as 90%. "It's bad for the issuers and the card networks," said payments analyst Rod Bourgeois. As part of the Dodd-Frank Act's overhaul of the financial code, Congress directed the central bank, which oversees the regulation of electronic payments, to ensure that the swipe fees charged by the banks and payment card networks like Visa and MasterCard were "reasonable and proportional" to the cost of processing the transaction. FULL STORY

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