Creditnet News Story
Benefit debit cards to be exempt, says Durbin
Monday, June 21, 2010
By William Davis
Illinois Senator Dick Durbin says benefit debit cards should be exempt, reports Bloomberg News.
During a hearing yesterday, Senator Dick Durbin slightly altered his position on swipe fees after support for his proposed amendment dwindled, says Bloomberg News.
Despite growing opposition from fellow senators, the National Retail Federation is standing behind Durbin's proposed amendment.
"There's a clear parallel here where the card industry sees retailers and their customers as well as the government and taxpayers as huge sources of revenue," says NRF senior vice president and general counsel Mallory Duncan. "Congress needs to bring these fees under control for both groups."
The government pays $116 million in card transaction fees per year, according to Bloomberg.
Merchants are assessed a fee of 1 or 2 percent for debit cards and at least 2 percent for credit cards by card issuers, according to the NRF, generating $48 billion in swipe fees in 2008.
Durbin's recent stance change comes on the heels of a letter issued on the behalf of several state treasurers, saying benefits issued via card could be compromised by the amendment.
Government benefit recipients will only be able to receive payments through direct deposit or prepaid debit cards next year, according to Kiplinger. Currently, 136 million people get their benefit checks mailed to them.
| 
Subscribe | |
