News Update: Senate Examines Credit or Debit Card "Swipe Fee" Amendment from House Leaders

House leaders agreed with members of Senate on an amendment to financial overhaul legislation that would cap fees that credit and debit card companies can charge retailers.

Sen. Richard J. Durban (D-Ill.) said this week that his proposed "swipe fee" amendment has not been included in the House version of the bill, but is in the Senate version.

Rep. Peter Welch (D-Vt.) wrote in an email that the swipe fee "preserves key protections for the grocers, retailers and country store owners most affected by out-of-control swipe fees, while addressing legitimate concerns of the industry."

The Senate approved the amendment last month in a 64 to 33 vote that would have regulated debit or prepaid credit card purchases; government-issued prepaid cards and refillable cards would not fall under this amendment.

Local and state government officials distribute unemployment and child support benefits using debit or prepaid cards rallied against the amendment, however, citing that social programs could accrue higher costs as a result of retailers not having to pay swipe fees.

The House and Senate's revised, joint version of the amendment exempts local, state and federal government debit and prepaid cards from the new fees, and government aides estimate that the federal government could save up to $40 million per year, as a result.

"The carve-outs made for government-run programs underscore our concerns about the harmful impact of this legislation to all card users," read an email from National Association of Federal Credit Unions president Fred Becker. "In its current form, this legislation would still put credit unions at a severe disadvantage compared to large credit card issuers."

House leaders showed the amendment to the Senate yesterday and a final version of the regulatory measure is yet-to-come.

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[MrBoy219]

When my bank starts charging me debit swipe fees is the day i take my money out of the bank... The bank pays me .01 % interest on the money i have in my debit checking account... I am not paying for swipe fees.. I will go back to check writing

[ART1975CZ]

She is Reading off something. Also, She acts like she does not even wan tto to the Video. Fine, Get Someone who Cares about what they are talking about. You sound like a tape recorder !