As Congress Works To Reconcile Financial Reform Bills, Swipe Fees Are One Of The Issues

http://www.laborradio.org/node/13654

Submitted by Doug Cunningham on June 7, 2010 - 5:39pm
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So-called “swipe fees” are one of the major issues being pushed as Congress prepares to marry the two versions of financial reform. Jesse Russell reports:

This week Congress will be banging out a financial reform bill combining both the Senate and House versions. One of the issues that proponents of hidden fee reforms are hoping to see make it out of conference committee is tighter restrictions on the way banks and credit card companies can apply so called “swipe fees.” Swipe fees, also known as interchange, are the fees that hit business owners every time you use your credit card. So if you purchase $100 at an establishment where card companies have determined a “swipe fee” of 2-percent the business needs to pay $2 to the card companies or banks. These costs are passed onto consumers via retailers through higher prices. One argument against regulating “swipe fees” is that it will make it difficult for companies to compete. Economist Elizabeth Warren disagrees:

: "If some issuers can’t do that, if the only way they can make a profit is by hidden fees, they’re really saying they can’t survive in a competitive market. The competitive markets are what we need to encourage. Ultimately they help consumers."

But they *can* argue about the nickel and dime level swipe fees. Folks -- bend over, Congress is trying to impress you yet again with the *change* being thrown at you from their limo windows....

# strike with a swiping motion
# pilfer: make off with belongings of others
# a sweeping stroke or blow

KNR