Inside these posts: Debit cards

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Durbin to JPMorgan CEO Dimon: Stop whining

Sen. Dick Durbin, left, has criticized JPMorgan Chase CEO Jamie Dimon for his bank's swipe fees, among other issues. (Michael Tercha/Chicago Tribune; Bloomberg News)

JPMorgan Chase CEO Jamie Dimon, who is critical of a key provision in the financial reform law, has been taken to task by U.S. Sen. Dick Durbin (D.-Ill.) in a scathing letter.

“There is no need for you to threaten your customers with higher fees when you and your bank are already making money hand-over-fist,” Durbin wrote to Dimon about the threat of higher debit card fees. “And there is no need to make such threats in response to reform that simply tries to spare consumers from bearing the cost of interchange fees that are anticompetitive and unreasonably high.” Get the full story »

Debit card battle heats up as fee limits criticized

(Digital Railroad photo illustration)

The regulator of large U.S. banks said a Federal Reserve proposal to crack down on the fees banks charge retailers when debit cards are used goes too far and could hurt banks over the long run.

John Walsh, acting head of the U.S. Office of the Comptroller of the Currency, wrote to the Fed on March 4, expressing his concerns over the rule.

“We believe the proposal takes an unnecessarily narrow approach to recovery of costs that would be allowable under the law and that are recognized and indisputably part of conducting a debit card business,” he wrote. “This has long-term safety and soundness consequences — for banks of all sizes — that are not compelled by the statute.” Get the full story »

Regulators question debit card fee limits

Top U.S. regulators said Thursday that small banks could be hurt by new limits on debit-card fees, comments that could fuel efforts to delay or change a provision in the Dodd-Frank financial-overhaul law.

The provision directs the Federal Reserve to cap “swipe fees” that debit-card issuers charge merchants each time a customer pays with a debit card. Banks and credit unions with less than $10 billion in assets, however, are exempted from the limit and can charge higher fees. Get the full story »

U.S. asks WTO to judge two trade spats with China

The United States said on Friday it had asked the World Trade Organization to decide on two disputes with China, one on restrictions Beijing has imposed on U.S. specialty steel exports and the other on access to its credit and debit card market. Get the full story »

Fed to face Congress on debit fee crackdown

The Federal Reserve may give U.S. banks insight into whether it will scale back its proposed crackdown on debit card processing fees, when a top official testifies before a congressional panel next week. Get the full story »

Fed seeks to cap debit-card fees at 12-cents a swipe

In a blow to the banking industry, U.S. Federal Reserve officials Thursday agreed to advance a proposal that would prevent banks from charging merchants “swipe fees” from debit cards that are higher than 12 cents per transaction.

“It’s going to be painful,” said Consumer Bankers Association President Richard Hunt. “If adopted, this will result in a significant reduction in revenue and efficiencies and have major negative implications for consumers.” Get the full story »

Fifth Third to pay $9.5M to settle overdraft suit

Fifth Third Bank has agreed to pay $9.5 million in a proposed settlement with customers who claimed they were improperly charged overdraft fees for insufficient funds on debit card purchases and ATM withdrawals.

The class-action lawsuit filed Nov. 21, 2009 in U.S. District Court in northern Illinois alleges that Fifth Third changed the sequence of transactions to deplete customers’ accounts more quickly and boost the number of overdraft charges. Get the full story »

Kardashian sisters want out of debit card deal

(Andy Kropa/Getty Images)

The Kardashian sisters are seeking to cut ties with a venture that sold prepaid debit cards under their name after coming under attack for the card’s high fees.

The card, which launched last month, was aimed at young adults, the same group that watches the sisters’ hit cable TV show “Keeping Up With the Kardashians.”

An attorney for the sisters sent a letter Monday to parties affiliated with the card demanding they stop using the names and images of the three sisters. Get the full story »

Chase to stop issuing new debit rewards cards

Chase plans to stop issuing new debit rewards cards in February. An executive from the bank disclosed the plans Thursday at a banking event.

A Chase spokesman said Friday that the bank is still reviewing the program for existing debit reward customers. Get the full story »

MasterCard 2Q profit jumps on overseas card use

MasterCard Inc. on Tuesday said increased use of credit and debit cards overseas helped lift its third-quarter profit by 15 percent.

IRS: Tax refunds on debit cards

A new Treasury Department program program would issue tax refunds on debit cards to those without bank accounts, in a move to get Americans their refunds quickly and saving the government the cost of printing and mailing checks.