That’s why the Federal Reserve almost doubled the interchange fees that banks can charge on debit card swipes, despite the fact that the initial proposal was much higher than what is charged in other industrialized nations:

Responding to an outcry from financial institutions, federal regulators on Wednesday significantly increased a new limit on fees that large banks can charge to merchants for processing debit card purchases, and they delayed the implementation of the cap until October.

The Federal Reserve voted 4-1 to set the limit for so-called swipe fees at 21 cents per transaction, an increase from the 12-cent fee it proposed in December. That fee would have gone into effect next month for large banks with more than $10 billion in assets.

In addition, the Fed on Wednesday allowed debit card issuers to add a fee of .05% of each purchase to cover a portion of fraud losses. That would add 2 cents to a $40 purchase. And debit card issuers could add a 1-cent-per-transaction fee if they undertook tougher fraud prevention policies and procedures.

The Fed said the new fee for an average transaction would be 24 cents. That’s still a big decrease from the current average swipe fee of 44 cents.

BTW, that “outcry from financial institutions,” they refuse to happens every time someone tries to reduce the ability of the banksters to rob the general public, and the “Responding to”, means that the Fed really has no interest inhelping consumers, they just had to determine the least that they could do to avoid a sh%$ storm.

Ben Bernanke and the Federal Reserve can bite my shiny metal………