Until the new Consumer Financial Protection Bureau kicks in, the Federal Reserve remains in charge of credit and debit card regulations. In new regulations proposed by the Fed, the swipe fees on debit card transactions have been reduced by 84%. Massachusetts bankruptcy lawyers and consumer lawyers see this as a victory for consumers because merchants will be able to lower fees to customers who use debit cards.
Basically, the Fed reduced the fees from 44 cents down to 7 to 12 cents in swipe fees. The credit and debit card issuers were, of necessity, outraged at the action by the Fed. Their stock prices were down on December 16 by 10% (Mastercard) to 13% (Visa). This will enable to retailers to lower their charges to consumers, goes the theory. The banks, however, say that they will simply charge higher fees elsewhere, which will adversely affect consumers.
Will Consumer Financial Protection Bureau Guru Elizabeth Warren chime in? When?