Some of the largest banks and lenders in the U.S. have already begun altering the programs they offer to customers in preparation for the possible implementation of a rule to cut the amount they can charge for swipe fees, according to a report from CNN Money. For example, many have axed debit rewards cards, boosted out-of-network ATM fees and hiked penalty interest rates, all in an effort to recoup lost revenues.
One lender has considered placing a price limit on debit card purchases, the report said. JPMorgan Chase may soon begin capping the value of debit card transactions at either $50 or $100 to further minimize the revenue losses it would face to process these transactions.
“If banks cannot recapture their fraud-prevention costs, it is likely that a lower percentage of transactions at the point of sale would be approved,” Bank of America’s president of consumer banking Joe Price told the news source via email.
The current swipe fee rules allow banks to charge an average of 44 cents per transaction, but the new regulations would cut that rate to just 12 cents.
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