Debit card charges on businesses to drop
BATON ROUGE- Small business got a win against banks Wednesday, but you may get caught in the crossfire.
The Federal Reserve told banks no more excessive fees for businesses accepting debit cards for payment.
Businesses, like restaurants and retail outlets, were paying up to 44-cents per swipe, but the new limit keeps banks from charging more than 21-cents a swipe.
Brewbacher's Manager Craig Coursey said, "Amongst the environment that we're in right now with rising commodity prices, rising energy prices, any time we can catch a break, especially small businesses, because it doesn't seem like we've caught many breaks lately, it's gonna be a big deal."
But some banks say they won't take the cut in profit on the chin, you will. Some banks are saying they'll take away rewards programs, free checking accounts and tack on annual fees to debit cards to make up the difference.
And people are appalled.
Anita Adams said, "They're never going to let it be easy on us or the people who are struggling so hard in this country to make a living. They're going to still make more money than they need to make and it's going to be on our backs."
"They're not gonna really cut into their profits anywhere, per say, they're gonna find a way to make it up regardless and usually that means passing the buck off to the consumer," said Grant Fletcher.
So some say, now more than ever, consumer beware.
"I think it's important for the consumers to stay aware and support their small businesses and support themselves. Enough is enough," said Coursey.
The new restrictions on bank charges to business starts October 1.