Debit Card Swipe Fees Have Dropped by 50 Percent

What's Hot


How to Cut the Cable TV Cord in 2017Family

8 Major Freebies and Discounts You Get With Amazon PrimeSave

8 Creative Ways to Clear ClutterAround The House

Study: People Who Curse Are More HonestFamily

This Free Software Brings Old Laptops Back to LifeMore

Pay $2 and Get Unlimited Wendy’s Frosty Treats in 2017Family

The 3 Golden Rules of Lending to Friends and FamilyBorrow

6 Reasons Why Savers Are Sexier Than SpendersCredit & Debt

Resolutions 2017: Save More Money Using 5 Simple TricksCredit & Debt

Porta-Potties for Presidential Inauguration Cause a StinkFamily

Protecting Trump Will Cost Taxpayers $35 MillionFamily

Tax Hacks 2017: Don’t Miss These 16 Often-Overlooked Tax BreaksTaxes

5 New Year’s Resolutions That Will Pay Off 10 Years From NowCollege

10 Simple Money Moves to Make Before the New YearFamily

The government says what businesses pay to debit card issuers went down substantially after an amendment to the law kicked in.

The Federal Reserve issues a report every two years about interchange fees – fees businesses have to pay card processors for accepting plastic.

Although merchants pay them, the fees matter to us because  in theory, the places we shop could be recouping those fees by charging us more when we pay with debit or credit cards.

The good news is the new report shows average fees have dropped by half. Thanks to part of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, debit card fees dropped, averaging 24 cents per transaction at the end of 2011, down from an average of 50 cents prior to the legislation.

There are other issues, though. The report says prepaid debit cards are becoming much more popular, with the number of transactions doubling over two years to 2.43 billion transactions worth $83.6 billion. Prepaid cards are often promoted by celebrities and are also laden with hidden fees.

While debit card fraud was down from the previous report, it was still an eye-opening $1.38 billion. A concern, since debit cards don’t have the same level of consumer protection afforded by credit cards.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!

💰🗣📰

Read Next: How the Trump Tax Plan Will Affect You

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,821 more deals!