Senate showdown over limiting debit card fees

[xchrom]

http://hosted.ap.org/dynamic/stories/U/US_DEBIT_CARD_FEES?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2011-06-08-04-36-20

WASHINGTON (AP) -- Consumers are caught in the middle of a fight between financial institutions and merchants as the Senate approaches a showdown vote over whether to block the Federal Reserve from capping fees that stores pay banks every time a shopper swipes a debit card.

The vote, scheduled for Wednesday, is the climax of a long, expensive lobbying battle between two industries that lawmakers hate to cross because of their influence back home and their campaign contributions.

"Those are folks who have a lot of presence in all our states," said Sen. Mark Pryor, D-Ark., who added he was undecided. He said, "This is one of those where people have friends on both sides."

At stake is whether to slash the $16 billion the Fed says merchants pay banks and credit card companies for the 38 billion times consumers use debit cards annually. The Fed says the fees currently average about 44 cents per swipe, which under a proposal the central bank unveiled last year would be capped at 12 cents per transaction.

[SpiralHawk]

1. "Friends on both sides." ? WTF ???

Hello? There's only one side, Senator: The citizens of the United States of America. That's who elected you. That's who you are sworn to serve. Hello?

To paraphrase Zorba, I like you too much not to tell you: You sound like a Republicon.

[xchrom]

3. +1

[KharmaTrain]

5. His Bank Account Cares To Differ...

Technically he only works for the people of Arkansas...but that's in name only. Damn right Pryor and a lot of others in that Senate have friends in the banking industry. Who do you think write the big checks so they can keep their jobs? Note how bills like these always come up a year before an election...and be assured those who "vote the right way" will get a "little love" from their banker friends. While I'd like to think our representatives work for us, those who write the big checks always get their calls answered...

[dkf]

2. I have a feeling this might become moot after we start doing things off our phones.

[hobbit709]

4. Pay cash. I use my debit card about once every 3 months.