Senate Democrats are currently bickering over the proposed rule that would cut debit card transaction fees by 70 percent, with one side arguing that the change would benefit consumers, while the other says it would be too harmful to banks, according to a report from the Capitol Hill news site Politico. Many on the Hill believe that because of the issues, it’s unlikely that the bill to approve the change will reach the 60 votes necessary to avoid a filibuster from GOP opponents.
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“This is a big political issue … you might say it’s a multibillion-dollar issue, because each month in America, over $1.3 billion is collected from customers all across America when they swipe their debit cards,” Illinois Sen. Dick Durbin said on the Senate floor, according to the report. “Where does the money go? Most of it goes to the biggest banks on Wall Street, the same banks that were just moaning and groaning a few years ago that they needed a bailout because they made some big mistakes. They’re back again.”
The rule would limit the amount banks can charge for processing a debit transaction to 12 cents, down from the 44 cents these purchases currently average. The regulation, originally proposed by the Federal Reserve Board, was to be put in place in mid-July.
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