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This Week in Credit Card News
Forbes | January 30, 2012“The increased use of cash may be a side effect of the interchange fee regulations that capped these swipe fees for debit card purchases. While a smaller fee was good news for most retailers, it provided a cruel twist for the smaller merchants. Business owners specializing in lower-priced items like coffee, candy and ice cream now have to pay a higher fee when their customers use debit cards for transactions because many card companies discontinued the discounts that were often given merchants for small transactions. Issuers say the higher swipe fee previously paid by retailers subsidized the discount for smaller transactions.”
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High-end Stores, Not Consumers, Benefitting from Durbin Amendment
BankCreditNews.com | January 30, 2012“Beth Robertson, the director of payments research at Javelin says that under the new fees, small retailers pay approximately 22 cents for an $8 transaction. Before the fee cap, an $8 transaction would have only cost 14 cents.”
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New Swipe Fee Battle: More Consumer Pain?
The Street | January 28, 2012“Retailers claimed the passage of the Durbin amendment could lead to a decrease in prices, since they would no longer have to pay the high swipe fees on debit card transactions. It is difficult to see if this actually took place. “
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Most Consumers Unsure Who Benefits From Debit Card Regulations
Bank Systems & Technology | January 27, 2012“Meanwhile, a number of small merchants that don’t benefit from Durbin are discouraging customers from debit card use, according to the report.”
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The Real Durbin Amendment Winners? High-End Stores
Main Street | January 26, 2012“In fact according to a report from Javelin Strategy and Research, merchants with an average transaction of less than $11 actually pay more now to take debit cards.”
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Consumers receive mixed messages on payment choice
ATM Marketplace | January 25, 2012 -
New Hampshire May Limit Credit Card Swipe Fees
Credit.com | January 23, 2012“On the other hand, many merchants who benefit from Durbin-driven reductions in interchange fees are encouraging debit card use, while small-ticket merchants who have seen costs for debit rise significantly are encouraging the use of cash or other payment options besides debit cards.”
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Another Swipe-Fee Battle Looms – This Time Over Credit Cards
TIME | January 23, 2012“If [a cap of 0.5% on credit interchange fees] happens, consumers who are used to generous credit-card rewards programs complete with double miles, accelerated earnings, and big sign-up bonuses might get a rude awakening.”
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Little Lenders Benefit from Debit –Card Rule
Wall Street Journal | January 23, 2012“[Small banks] say their new advantage will evaporate as merchants steer customers away from debit cards by dangling discounts for cash and other incentives.”
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Occupy Wall Street? No, divest from it
Christian Science Monitor | January 18, 2012“With new federal caps on fees, everyone in the industry – small banks and credit unions included – are looking at cutting costs and raising revenue.”
