SMALL BUSINESS NEWS

1 July  2011

 

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The Federal Reserve set Debit Transaction Fee

On Wednesday, 22 June 2011, the Federal Reserve voted to cap the debit card transaction fees that banks can charge retailers.  The fee, which used to be .44 cents, will now be no more than .24 cents per transaction.  The end result is that retailers will be able to keep about 50% of the feeds they would normally pay to the banks.  More in the pockets of small businesses is a good thing.

The charges were mandated by the Dodd-Frank Financial Regulation, which was passed by congress and signed into law by the President in 2010. 

Banks with less than $10 billion in assets are exempt from this limit.   They may continue to charge higher fees.

The new rules will go into effect 1 October 2011.

By Owen Daniels

 

 

 

 

 

 
 

 

  

 

 

 

 

 

 

 

 

 

 

     

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