Senate Votes to Curb Debit-Card Fees
By GREG HITT And MICHAEL R. CRITTENDEN
WASHINGTON—The Senate, voting 64-33, moved Thursday to curtail the "swipe fees" that financial companies impose on debit transactions, a nod toward consumers that dramatizes the increasingly populist tint of pending legislation that would overhaul regulation of the financial-services sector.
Under the amendment offered by Sen. Richard Durbin (D., Ill.), the Federal Reserve would be authorized to regulate the fees charged to businesses by financial firms on debit cards, as well as empower merchants to offer discounts to customers if they pay with cash or check.
Critics contend the fees imposed on debits are far higher than the actual cost of processing those transactions, and annually impose billions of dollars in costs that are eventually passed onto consumers. Sen. Durbin complained the financial companies were imposing "outrageous" fees imposed on merchants and retailers, and has fought for months for the proposal.
"In a time of recession, when we need small businesses to step up and create jobs, this is a way to move forward," Sen. Durbin said.
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