Swiped Away
12/08/2011 | | Credit Cards, Debit Cards, Dodd-Frank, Interchange fees, Swipe Fees, Transaction Fees, Unintended Consequences
Due to Dodd-Frank, the Fed capped fees merchants pay credit card companies (CCCs) on debit cards (DCs) to about 21 cents from about 44 cents. When the fee was 44 cents, CCCs often reduced DC fees on small transactions; less than $5 or $10. Because the fee was lowered, CCCs now want the full 21 cents even on small sales and stores are raising prices to compensate. Did you anticipate this?