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Small Businesses Could See Relief in Financial Reform Bill
The Senate is preparing to vote on the bill, which would make credit and debit card swipe fees "reasonable and proportional."
Posted 7/ 5 10 at 3:00 PM | News, Money, Sales, Legal Issues, Consumer Products & Services, Financial Services, Retail
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A A AAs lawmakers return from the Fourth of July recess, the Senate is expected to vote on the financial reform bill approved by the House last week -- with a provision affecting credit and debit card fees that is likely to benefit small businesses.
Although the Senate version of the bill spearheaded by Richard Durbin (D-Ill.) made concessions on the issue to appease the House, which passed its version on Wednesday, the compromise measures are still expected to provide relief for small-business owners.
"Swipe fees have long been a problem for many small businesses, and though the compromise doesn't go as far as [we] would prefer, it does offer some relief," the National Small Business Association said in a statement.
In the compromise bill, the Federal Reserve has the authority to enforce credit and debit card fees so they are "reasonable and proportional to the actual cost incurred" in a transaction. While fees charged by Visa, MasterCard and others will face no government regulation, issuers will be required to provide merchants with more processing options. This competition could drive down processing fees.
The bill bans merchants from offering discounts for transactions processed through one card network over another, but allows discounts for certain forms of payments, whether check or cash. The card networks will be permitted to limit the minimum transaction to $10, though the Fed can raise this threshold over time.
Although the Senate version of the bill spearheaded by Richard Durbin (D-Ill.) made concessions on the issue to appease the House, which passed its version on Wednesday, the compromise measures are still expected to provide relief for small-business owners.
"Swipe fees have long been a problem for many small businesses, and though the compromise doesn't go as far as [we] would prefer, it does offer some relief," the National Small Business Association said in a statement.
In the compromise bill, the Federal Reserve has the authority to enforce credit and debit card fees so they are "reasonable and proportional to the actual cost incurred" in a transaction. While fees charged by Visa, MasterCard and others will face no government regulation, issuers will be required to provide merchants with more processing options. This competition could drive down processing fees.
The bill bans merchants from offering discounts for transactions processed through one card network over another, but allows discounts for certain forms of payments, whether check or cash. The card networks will be permitted to limit the minimum transaction to $10, though the Fed can raise this threshold over time.
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Comments (Page 1 of 1)
Not sure why we are so concerned with Bailing out Banks yet again, we pump our hard earned Tax dollars into a failing economy and bail out the big brother, when many millions of Americans lost their unemployment insurance, such as myself, when is the government going to start stepping in and help those that need it the most? What good is helping a small business when the average American cant even shop? Wake up Government. Not everyone grew up with a silver spoon in their mouth.
Uniforms for me: Those silver spoons grew out of the mouths of congressmen and senators after many years in the Hill.
We must take their silverspoons away and give them to first time candidates with the "caveat" that we can always take them back!
First of all, you have to understand Congress 101: THOSE THAT BUY CONGRESS GET TO MAKE THE RULES. The banking industry makes over $10,000,000,000 (wow... lotsa zeroes) on ATM fees alone. They told Congress in the 90's that ATM fees were breaking them. Congress does not represent people, it represents businesses and caters to the ones that buy the votes. The government "of the people, by the people and for the people" is a quaint old, but now useless, axiom. That is until the people really get fed up. Then with no place to turn, Congress will force a revolution in this countyry where those that have lost everything (and have nothing else to lose) WILL take up arms against the Congress, the greedy executives (Goldman-Sachs execs are buying guns and getting carry concealed permits... they are scared and rightfully so. They stole billions and gave themselves multi million dollar bonuses). Only Congress has the power to change this. Will they? I doubt it. They are too greedy themselves!
throw out career politicians and elect citizen legislators who will put term limits on themselves and restore our liberty and freedoms.we have a group of powerful legislators and a president who disregard the constitution and spend us into bankruptsy to pander to the uninformed and special interests who will give them more money to pander to the uninformed.