Two House Representatives, Jason Chaffetz (Utah Republican) Bill Owens (New York Democrat) plan to introduce a measure to repeal the rule required by the 2010 Dodd-Frank Act, which imposes a cap on the fees that major credit card companies place on businesses, resulting in half the average retailers used to pay in the past. Chaffetz states the repeal legislation “fixes the disastrous consequences of this bill.”
According to data compiled by Bloomberg Government, these caps may cut $8 billion in revenue from the largest U.S. banks. Consequently, Bank of America Corp., JPMorgan Chase & Co., Wells Fargo & Co. and SunTrust Banks Inc. have been initiating charges that debit card holders are now starting to pay.
The swipe-fees have been the second-highest cost of doing business for retailers and therefore became the center of the fight in Congress, as part of the financial regulation overhaul.
Max Gleischman, Durbin’s spokesman, states, “Efforts to kill swipe fee reform have been tried and have failed in the Senate, where there is no interest in rewarding Bank of America’s bad behavior with a multi-billion dollar payout,”
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