Big Changes Could Soon Affect Debit Cards

PITTSBURGH (NEWSRADIO 1020 KDKA) — The U.S. Senate and Federal Reserve are hammering out the final details on big changes that will affect how you use your debit card.

When you swipe your debit card, the merchant pays a fee to the bank, but merchants said the charges were a detriment to their business. The Feds agreed and those charges will drop, but now the banks will have to make up the difference.

Will this mean lower prices when you shop? Will your bank create and raise fees to make up the difference?

KDKA AM’s Larry Richert talks to Duquesne University bank expert Tom Nist about what happens in the background when you swipe your card, and how coming changes will affect you directly.

U.S. Senate
Federal Reserve
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One Comment

  1. sheriff says:

    Banks 1 Consumers 0…….You can bank on it.

  2. Jim says:

    Consumers will get burned. Thanks for nothing, government! Stores will keep the same prices that they were charging so will get a silent raise in revenue. Banks will NOT allow themselves to lose money so the fee that used to be paid by the retail stores will now be passed to consumers through additional bank fees.

  3. FedUp says:

    Agreed, it will be a win-win-lose on this one. Retailers will see their profit margins increase because there’s no way they will pass any savings on to the consumer. Banks will balk at having their profits reduced by a cap on debit fees so they will just make up for the lost income with other banking fees. Now we come to the ‘loser’ part of the equation – that will be you and I, the actual consumer who will continue to pay higher prices from the retailers along with higher banking fees! Boy am I glad the government is watching out for me!

  4. Mary says:

    When will they go after retailers who post those “Debit cart minimum” signs? Retailers who agree to accept credit/debit cards are not allowed to impose a minimum purchase price, they cannot refuse your card if you’re purchase is under a certain amount. Retailers do this because the smaller purchases are not worth it because they pay for each transaction. If they’d read the fine print in their contract, they can actually lose their machines if they refuse purchases. Call your bank and turn in any business who refuses your card or posts a sign stating a minimum purchase is required.

    1. Steve says:

      Agreed. Complaints to Visa/Mastercard can cause the store to lose their ability to accept cards altogether. Consumers are not required to pay a $10 min (or any minimum.)

Comments are closed.

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