There has been a lot of discussion lately about debit-card fees, with the big banks screaming about limits that were proposed on them by last summer's financial reform legislation. The issue, in a nutshell, is this: Banks currently impose an average fee of 44 cents each time you swipe your debit card. You don't pay this fee; the retailer where you're making your purchase does. The Fed now has until April 21 to consider the effect of the proposed new limits, which would cut that fee to no more than 12 cents.
Banks and credit unions have been complaining vociferously about the new rule, claiming it could cost them as much as $12 billion a year in lost income. On the other side, retailers like Target and Home Depot have stepped up their lobbying efforts in favor of the new rules.
The most immediate result of all this controversy is that the issue will likely get kicked down the road. Two senators have introduced a proposal that would delay implementation of any debit-card fees for an additional two years. What seems unlikely to happen is that any version of the swipe fee would be imposed directly upon you, the consumer: In pretty much all the scenarios, you'll end up paying slightly higher prices at retail stores or fees to your bank. But what else might happen is still anyone's guess.
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