Debit card swipe fees inflated, judge rules

  • Article by: Jim Spencer , Star Tribune
  • Updated: July 31, 2013 - 9:16 PM

Retailers, convenience stores, food sellers and gas stations had sued over the Federal Reserve rule on credit and debit card transactions.

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wiseoracleJul. 31, 13 7:55 PM

The government should not be concerned with indemnifying the industry from fraud losses. Managing fraud loss is part and parcel of what in means to be doing business in the consumer credit\debit card space. If the card issuers were not allowed to gouge the honest consumer, in order to cover their losses... They would be compelled to manage fraud in a more appropriate fashion. Like not sending offers in the mail to kids, pets, dead people, and others whom shouldn't be solicited in the first place! Fed doesn't protect *me* from losses.... How about you? No such thing as a "free market economy" any longer, huh? I wonder if they are picking the winners at Canterbury too?

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wiseoracleJul. 31, 13 8:16 PM

The government should not be concerned with indemnifying the industry from fraud losses. Managing fraud loss is part and parcel of what in means to be doing business in the consumer credit\debit card space. If the card issuers were not allowed to gouge the honest consumer, in order to cover their losses... They would be compelled to manage fraud in a more appropriate fashion. Like not sending offers in the mail to kids, pets, dead people, and others whom shouldn't be solicited in the first place! Fed doesn't protect *me* from losses.... how about you? No such thing as a "free market economy" any longer, huh? I wonder if they are picking the winners at Canterbury too?

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candcduluthJul. 31, 13 8:33 PM

The consumer will either "pay" to use their own money by higher prices at the store or by the higher fees that the banks charge. The consumer never really wins in this game.

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wowzerdudeJul. 31, 13 8:51 PM

Who will be the first to point out that this will be an impediment to the economic recovery?

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tuttifruttiJul. 31, 13 8:54 PM

The government can make whatever rules they want. Politicians write these laws with loopholes to protect them. It is all a joke and we end up paying more because of it.

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redqidJul. 31, 13 9:01 PM

the U.S. Federal Reserve Board allowed banks and credit card companies to charge “inappropriately” inflated fees for using debit cards in retail transactions. --- The Fed always favors the banks regardless of the law.

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bgmach3Aug. 1, 13 4:51 AM

Oh well. I'm sure the banking industry will just have to elect a few more politicians to help them out.

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cgoebelAug. 1, 13 8:44 AM

Please be accurate in your reporting. The headline is incorrect. This has nothing to do with credit cards, but with the swipe fee merchants pay for debit card transactions. As for the cost of covering fraud on debit cards, most fraud occurs at the merchant end of the transaction, with skimmers used at gas pumps, swipe stands at checkout, and even in the pockets of clerks and others who handle cards during a transaction. Most card security breaches also come from servers at merchants that are not properly protected from hacking. Most of the cost of debit card fraud is incurred by the financial institution, because card rules make it very difficult to go against the merchant. Those costs need to be shared.

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EbuddyAug. 1, 13 9:13 AM

I wonder who gets to decide, for any industry, what a "fair" profit is?

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