Releases

New financial regulations that cap the amount banks can charge for debit card transaction "swipe fees" promise to send ripples through the economy, from the very largest card-issuing banks to merchants to individual checking account holders. Card-issuing banks expect they stand to lose $9 billion annually as a result of the cap on transaction swipe fees that start Saturday. "Bank customers accustomed to free checking and rewards perks will see those incentives disappear as banks try to recoup the lost revenue," says Zahara Alarakhia, a partner in Dallas-based Munck Carter. "Merchants stand to gain by not having to pass along the higher fees, but it remains to be seen whether that will translate to lower prices for consumers." For more information, contact Robert Tharp at 800-559-4534 or robert@androvett.com.