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|Durbin Wants Lower ATM Fees
|(IRN) -- Illinois' senior U.S. Senator hopes to bring down the fees bank charge when their customers use debit cards, and the deadline to impose those changes is quickly approaching.
U.S. Sen. Dick Durbin (D-Ill.) says banks charge an average of 44 cents per debit card transaction, called an interchange fee, and it's killing small businesses who make little to no profit on certain purchases. Durbin says the country's major banks, on the other hand, make out like bandits.
"Each year [major banks] make up to $8 billion in interchange fees for debit cards that are used," says Durbin. "So, needless to say, they're not happy with the notion that the Federal Reserve is going to bring down this interchange fee."
Some banks say they"ll likely implement new fees on other services, such as checking accounts, to offset the lost revenues.
Kate Hawkes, owner of the Trout Lily Cafe' in Springfield, says something has to be done -- because she's having a tough time making ends meet.
"Everything is going up," she explained. "Gas is going up, that raises the price of everything we sell. We're trying to stay open, we're trying to provide service to the people. Debit cards are killing us."
The Federal Reserve recently determined it costs banks an average of 12 cents to facilitate a debit card transaction, a far cry from the average 44 cent charge imposed on merchants. Durbin says the fed should take its cues from other countries that have much smaller interchange fees. In some European nations, for example, Visa and MasterCard charge 9 cents per transaction. In Canada, they don't charge anything.
Durbin wants the Federal Reserve to set the new fees by the end of this month, which would go into effect July 21st. It's up to the Fed, however, to decide what the new fees will be.
(Illinois Radio Network)
|06 10 11 by Newsroom
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