Hello Again DK:
I'm writing to explain yet another issue that is being neglected in the Financial Reform package.
The CC companies, and banks are considering charging a premium to process "Debit Card" transactions, which are essentially checks.
Yet they do not charge that same transaction for actually writing a check.
You've heard me rattle on about the unfair fees charged to Merchants for processing credit cards....yet there is another sneaky fee we need to highlight or we'll get nickle and dimed again, as CC companies and banks exploit "near loopholes" in existing regulation.
Here is the essence of the issue:
Given that debit/check cards are essentially electronic checks, merchants should not be charged more to process a debit/check card transaction than to process a paper check. Unlike with credit cards, debit transactions don’t extend credit, instead it is simply an electronic transfer of cash.
Congress should clarify that the Federal Reserve’s existing authority to clear checks extends to debit/check card transactions as well.
Why?
Debit/check cards are essentially electronic checks. Yet, despite advancements in technology, it is more expensive for merchants to process a debit/check card transaction than it is to process a paper check or even cash.
Some quick findings
The Government Accountability Office (GAO) released a report to Congress on interchange fees . In its report, the GAO found the following with regard to the swipe fees associated with debit/check card purchases:
• Debit/Check Cards are the new check.
"Today, customers can choose among different types of payment cards. Consumers can use debit cards with a personal identification number (PIN) they enter on payment or with a signature. The payment is transferred directly from the cardholder’s account to the merchant’s account. With a debit card, the payment comes from the cardholder’s checking account."
Let's stop the greed associated w/ excessive hidden taxation on our businesses and in essence you and I. Enough is enough - whether credit or debit. The banks need to get off the backs of small businesses and consumers, and go back to their primary function..... LENDING MONEY!
Enough said. (for today anyway). Now get w/ me and help kick this thing in the &%^# before they go any farther!