Swipe Fee Vote Coming Up Tomorrow (06/08/2011)

  • creature

    Posts: 5197

    Jun 08, 2011 2:30 AM GMT
    For all the rhetoric that was spoken about helping small businesses, I'm somewhat surprised representatives are considering postponing the new rules set to take effect on July 21st regarding swipe fees.

    Current swipe fees range from $1 - $1.30
    The proposed rule will limit the fees to 7 - 12 cents

    There's also this provision:

    The introduction of competition, by giving merchants a choice as to which debit network they process transactions over. For example, present arrangements effectively force merchants to process many Visa transactions over the STAR network, even if competitors like PULSE and NYCE offer to conduct the same transaction at a lower processing price.

    http://www.huffingtonpost.com/2011/06/07/swipe-fee-vote-wednesday_n_872835.html

    http://www.huffingtonpost.com/2011/06/07/swipe-fee-vote-wednesday_n_872835.html
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    Jun 08, 2011 3:37 AM GMT
    My bet is with the swipe fees staying in place, because most of the politicians re-election campaign funds will be cut if they go against the 'status quo". The businesses collecting all those billions from swipe fees, won't look to kindly on Politicians who vote against their profits, their attitude is the hell with what is good of the American citizens.
  • calibro

    Posts: 8888

    Jun 08, 2011 3:48 AM GMT
    duh. banks have more money than small businesses
  • creature

    Posts: 5197

    Jun 08, 2011 3:50 AM GMT
    The votes are still in the air. And from the interviews, some senators are holding back on taking a hard position, and would rather go with the flow.

    There is the threat of banks charging fees for things that are now free. But I think it's okay for the consumer to endure whatever it is to help businesses, and eventually ourselves. And this is not even partisan. This has Republicans and Democrats split.
  • creature

    Posts: 5197

    Jun 08, 2011 3:51 AM GMT
    calibro saidduh. banks have more money than small businesses


    It's also big business too. They're on the side with the little guys. They would rather save money on the fees too.
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    Jun 08, 2011 5:15 AM GMT
    I've been getting hit with banner ads all day, informing me that my "debit card is going to be taken away" or that congress is voting on whether to "impose huge fees on debit-card holders" or "congress is taking away your rewards points!" I clicked through, and it informs me that my senator "is still on the fence" over this vote and provides a pre-filled form to send him an email, begging him to vote for the innocent banks and avoid sending "billions of dollars in windfall profits to greedy merchants."

    What utter scumbags.

    Oh, and by the way, it's not "$1 - $1.30" per transaction. That's just the minimum, for a $10 purchase or something. It's up to a dozen little fees that always add up to at least 5%, no matter how big the purchase. And while you or I might think that a card-swipe is "a transaction," the banks figure it out to be four or more separate transactions, each with it's own fees.

    There's a transaction to check your credit.
    There's a transaction to debit your account.
    There's a transaction to move the money into the credit card network.
    ....intermission... (the bank holds on to the money for a week or two, and presumably they're using it to make money during this time)
    Eventually, there's a transaction to credit the merchant's account.
    Finally, there's another transaction to deduct all of the fees from the merchant's account.
  • calibro

    Posts: 8888

    Jun 08, 2011 5:28 AM GMT
    creature said
    calibro saidduh. banks have more money than small businesses


    It's also big business too. They're on the side with the little guys. They would rather save money on the fees too.


    duh. banks have more money than big business.
  • Posted by a hidden member.
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    Jun 08, 2011 7:10 AM GMT
    calibro said
    creature said
    calibro saidduh. banks have more money than small businesses


    It's also big business too. They're on the side with the little guys. They would rather save money on the fees too.


    duh. banks have more money than big business.


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    I mispoke because I was using Banks/businesses interchangeably, Banks do have a lot more money than most businesses. But even so I am afraid our Politicians will vote in the direction most likely to keep the money flowing their way, which more than likely will mean keeping the status quo. I'm not for that though, I would much rather see those swipe fees go way down as has been proposed.
  • creature

    Posts: 5197

    Jun 08, 2011 10:27 PM GMT
    Tester's amendment failed to garner enough votes. Effective July 21st there will be new caps on swipe fees.

    http://www.huffingtonpost.com/2011/06/08/swipe-fee-reform_n_873342.html
  • Posted by a hidden member.
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    Jun 09, 2011 12:27 AM GMT
    Yay, I rejoice (as I'm technically one of those "merchants" who won). Maybe it'll add like several thousand bucks a year to our revenue.

    Way to go to stimulate the economy.
  • creature

    Posts: 5197

    Jun 09, 2011 12:37 AM GMT
    q1w2e3 saidYay, I rejoice (as I'm technically one of those "merchants" who won). Maybe it'll add like several thousand bucks a year to our revenue.

    Way to go to stimulate the economy.


    I'm happy for you q1w2e3. I'm really disappointed in those Democrats, especially Tester, who wanted more time to evaluate the effect, and thus open up the potential to have the Durbin amendment dissolved completed.

    How do you find out who voted on the issue?