A regulatory battle over what’s commonly known as swipe fees has ended with a compromise from the Federal Reserve, and though less than originally proposed, the new fee cap announced Wednesday will still mean revenue loss for most banks that have to comply.
Included in the Dodd-Frank financial overhaul passed by Congress more than a year ago was the Durbin amendment, which proposed a cap on the amounts banks can charge for swipe fees. Swipe fees are what banks charge for each debit card transaction made, typically averaging between 40 and 44 cents per swipe. Merchants pay the transaction fees to banks, ensuring a guaranteed payment on their sales and decreasing the fraud risks often incurred with checks.
The Federal Reserve, the agency charged with implementing the historic financial reform, initially posed placing the swipe fee cap at 12 cents, or 75-80 percent less than what banks currently charge on average. But the Fed, after an outcry from the banking lobby, announced a higher cap of 21 cents to begin Oct. 1, according to The Baton Rouge Business Report’s website.
Banks with less than $10 billion in assets are exempt from the debit interchange fee cap, though smaller banks have raised numerous concerns over whether they might still be affected by the new rule. Bigger banks directly impacted by the new rule have come out strong against the cap and say the lost fee revenues will ultimately be passed down to consumers:
Regions Bank’s south Louisiana market, which has about 90 locations, was facing a $14.8 million annual revenue loss had the fee been fixed at 12 cents ... The break-even point on swipe fees is 22 to 24 cents ... so the bank still will encounter some loss.
Read more here.
Halliburton says it has agreed to pay $1.1 billion to settle a substantial portion of plaintiff claims arising from the 2010 Gulf of Mexico oil spill.
The Houston firm said Friday in its weekly report that 1,575 rigs were exploring for oil and 338 for gas. One was listed as miscellaneous. A year ago there were 1,776 active rigs.
It will be next month before Gov. Bobby Jindal will likely get a chance to change the membership of a South Louisiana flood board that is suing dozens of oil, gas and pipeline companies.
Newly established honor recognizes outstanding local attorneys; Neuner and McGoffin win President's Award; and Blanchard named Outstanding Young Lawyer.
Daily paper constructing new digs near production plant on Rieger Road at Siegen Lane, near I-10.
Investigation finds Arnaud’s Furniture, Carroll Building Specialties and Crazy Charlie’s Shoes running misleading going-out-of-business sales.
Critics say workers and retirees are being held responsible for the Jindal administration's mismanagement of their program.
Potenza Marketing makes fastest-growing companies list.
Local 101 class Friday
“Byzantine” is the word members of the nominating committee for the local flood protection authority often use to describe the complicated, multi-layered matrix of qualifications that must be met to fill a vacancy on that board.
In the Pelican State, Benjamin Franklin buys you about $109 worth of stuff.
Brittan Bush joins Liskow & Lewis, Blake David installed as the Third District Member of the Louisiana State Bar Association’s board of governors, and Simien & Miniex announces 2014 scholarship winners.
“In some cases, we’ve found that these parts are nothing more than used junk yard parts. In others, we’ve found them to be foreign knock-off parts of questionable quality.”
The old Daily Advertiser building on Jefferson Street is being rehabbed as the owner prepares to move it back into commerce.
Its fourth leader gone after two years on the job, the facility struggles to balance the tension between its two missions.
Hub City Cycles hits the ground running through small-business center opportunity.
The future of the coastal loss lawsuit could rest in hands of board’s nominating committee.
Leaders from the local tech community ponder the question: What's missing from Acadiana's tech ecosystem?
AT&T’s U-verse heads our way. Here’s what it means for you.
LITE’s virtual environments are changing the way local employees learn how to do their jobs.
Local tech gurus will go the distance to call Lafayette home.
A look at recent hires, promotions and other news from Acadiana's business community.
New Johnston Street eatery catapults to No. 1 spot in nearly 200-location chain.
By identifying companies that match the output of its post-secondary educational institutions, Lafayette is creating opportunities that keep highly trained graduates in the area.
Gideon’s Promise lauds G. Paul Marx’s work to improve the quality of indigent defense and helps train five new public defenders.