Bank Fees And You Informative - Debit Card Fee Decrease May Mean Increases Elsewhere
ANYTOWN -- Today the Federal Reserve Board recommended that the fees bank charge for a debit card transaction (swipe fee) be limited to $0.12 per transaction.
Currently, the fee averages 1%, with some banks charging as much as 2%. On a $200 transaction, 2% is $4. Needless to say, this change will cost the banks a lot of money - it is estimated to be billions each year.
So, while complaints of new bank fees are already escalating following the mandated reduction in overdraft fees, get ready for the possibility that maintenance fees and minimum balances will more likely be coming to your banking institution.
The stock of Mastercard and Visa plummeted today about 10% on this news, as these institutions are heavily dependent on such revenue.