Brown Limits Debit Card Fee in Reform Bill

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Brown Limits Debit Card Fee in Reform Bill

Business Journal Daily – YOUNGSTOWN, Ohio — A provision in the financial reform bill being debated in the U.S. Senate would help businesses with high volume and low profits margins by reducing the fees on debit card transactions charged by banks and card issuers, said U.S. Sen. Sherrod Brown.

The provision, which passed 64-33 with bipartisan support, would direct the Federal Reserve to issue regulations to ensure that interchange or "swipe" fees imposed on debit card transactions are proportional to the costs of the transaction.

Brown, D-Ohio, told reporters during a conference call Wednesday that the interchange fees typically charged on debit card transactions are 1% or 2% of the purchase.

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