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Beware of Debit Card Caps

The new rules haven't been finalized yet, but there's a good chance that "swipe fees" (what banks and card issuers charge merchants when a debit card is used to make a purchase) will be reduced in July. So what does that mean for your wallet?

Well, it could lead to slightly lower prices for some products in the long run. However, no one knows if that will really be the case, and banks are already claiming that the reduction in interchange profits may force them to place limits on how much customers can spend on their debit cards. Of course, that would affect your wallet immediately.

We don't know exactly what these new debit card caps will be, but it's safe to say that new limits could cause some real problems for consumers who choose to shun credit cards and cash for debit. Those that do, may be forced to accept the risk that comes with making more purchases with cash or giving credit cards another chance.

on Mon, 2011-03-07 16:00