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.
C & C Technologies, HIT Fitness, R3 Sciences, the Acadiana Symphony Association and the United Way of Acadiana recognized for innovation.
Under the deal, Teche shareholders would get 1.162 shares of IberiaBank for each share of Teche stock.
Dave Perkins, LCG Comp Plan honored along with local architects and designers at the 2014 INDesign Awards
Greg Manuel’s Lafayette-based residential development company is taking advantage of exponential industrial growth in Lake Charles.
Longtime Lafayette retailer ventures online.
The annual juried competition recognizes excellence in architecture, interior design and historic preservation in Lafayette and the five surrounding parishes.
It’s not how aggressive or conservative you are — it’s planning for risk that matters most.
Cypress Bayou GM hosts open house.
Thanks to cutting-edge digital technology, more and more consumers are banking on ATMs and mobile phones.
Regional bank bids farewell to Downtown May 30
ABiz takes a look back at the most noteworthy moments for the local banking industry over the last year.
Most experts say short-term interest rates will be unchanged through 2014, but long-term rates are inching up.
New hires, promotions, transfers in Acadiana business
The scion of a landmark Four Corners restaurant climbs back into Lafayette’s culinary scene as franchisee for a popular burger chain.
Largest recruitment event in Acadiana returns May 21 to the Cajundome Convention Center
A lawyer’s ad should only be a starting point, as there is much more to consider when seeking quality representation.
Thanks to the inaugural 2012 INNOV8, a design for lifting heavy objects was brought to market.
His company bankrupt and being liquidated, the Lafayette businessman’s financial troubles are mounting.
Georgia-based fried chicken chain would go up against Raising Cane’s, Chick-fil-A and others (like the Popeyes near its proposed location).
A Scott businessman has pleaded guilty to failing to report a conspiracy to award Opelousas Housing Authority construction bids to his company.
Court-appointed examiner says Lafayette businessman was “effectively on both sides” of transactions, opens door for legal action against him.
Lafayette-based insurance broker/risk management group bought by Florida firm for undisclosed sum; principals Landry and Harris continue to run local operations.
The House labor committee rejected bills Thursday that would have set the state minimum wage higher than the hourly federal rate of $7.25 and would have allowed local governments to set their own minimum wage.
Of the major oil- and gas-producing states, Louisiana gained nine rigs, Texas increased by seven, California gained three and New Mexico increased by one.
The Louisiana Workforce Commission said Friday that initial claims rose to 2,101 from the previous week's total of 1,985. There were 2,444 initial claims during the comparable week in 2013.