Debit Card Rules Save Banks $3.5 Billion, Moody’s Says

(Source: New York Times) - While new caps on debit card fees will cost Wall Street billions of dollars in precious revenue, the dent could have been much worse.The Federal Reserve’s decision last week to cap the fees at 21 to 24 cents per transaction, rather than the 12 cents it originally proposed, will save the banking industry some $3.5 billion in revenue each year, according to a new report by Moody’s.

The Fed also agreed to delay the rules for more than two months, “allowing the banks to prepare for the changeover and earn swipe fees at the current rate for a longer period,” Moody’s said.

Source: DealB%%k by Ben Protess

July 6, 2011, 1:23 pm

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