Unintended consequences of debit-fee cap emerge

12/7/2011 | Wall Street Journal, The

The limit on debit card transaction fees was meant to lower costs for retailers, but has, in some cases, done just the opposite. Card companies used to offer merchants who sell low-priced goods discounts on the fees they pay on debit card transactions. The overall cap has prompted the banking industry to eliminate such discounts. "There will be some unhappy parties, as there always is when the government gets in the way of the free-market system," said Chris McWilton, president of U.S. markets for MasterCard.

View Full Article in:

Wall Street Journal, The

Published in Briefs: