I'm not sure this is for real, or JPMorgan just positioning itself for the battle ahead.
But according to Money.cnn.com JPMorgan Chase is considering a cap on debit card purchases as low as $50, according to an unnamed source with knowledge of the proposal.
This all comes about because of the so-called Dodd-Frank Wall Street Reform Act passed last year. Many details were left up to individual agencies. The Fed gets to decide this detail.
At present, every time you swipe your card, banks charge retailers an "interchange fee," which averages out to 44 cents per transaction. These fees add up to $16 billion per year, according to 2009 data compiled by the Federal Reserve, but the Fed is proposing rules to cap interchange fees at 12 cents per transaction.
The proposed fee cap is big enough to potentially cost JPMorgan over $1 billion in revenue per year. Naturally, JPMorgan and other banks are not happy about this cap. The proposed cap on fees does nothing but create another power center at the Federal Reserve, where Jamie Dimon and other top bankers will have to play nicey, nicey to a bunch of bureaucrats.
(Thanks2BobEnglish)
This news leaves me very annoyed. What a stupid Fed rule. Stupid.
ReplyDeleteHow is this going to help anybody? Chase isn't the only bank that will start to do this. I usd my debit card frequently and my bank will no doubt enact a similar policy because of this stupid regulation.
The banking sector needs reform, but not this way, not this direction.
"I'm not sure this is for real" Might want to change that statement to: "consumer protection" regs hurts consumer yet again.
ReplyDeleteCollegue at chase working in debit card operations, validates debit card changes for debit card holders. My collegue informed me the first change is the elimation of debit card rewards.