Welcome to the morning roundup. Here's a look at what's news in banking and finance.
Credit card surcharge. Merchants are pushing for a rule change that would allow them to impose a 2.5 percent to 3 percent surcharge on customers who use credit cards to help cover swipe fees, the Wall Street Journal reports. Visa and MasterCard currently ban such surcharges, but the industry is currently facing numerous lawsuits seeking to overturn them. Credit card swipe fees have been rising even as the Dodd-Frank financial reform law capped debit card swipe fees.
Inexperienced regulators at JPM. The New York Fed's decision to replace its 40-odd regulators in mid-2011 left the regulation team inexperienced and could have contributed to their failure to see an impending multi-billion-dollar trading loss, The New York Times says. They could not "ask the tough questions," one former regulator told the Times.
Jobless claims, stock futures down. Despite a report that initial jobless claims in the U.S. were down more than expected, stocks are pointed down as well, the Wall Street Journal reports. The Financial Times says it's because global central banks are not moving to quell investor fears.
Bank bonds up. Bond prices at U.S. banks are up big this year, rising more than any other industry and being led by Bank of America, Bloomberg reports. The 8 percent gains are a stark departure from last year's paltry bond price rise. Investors are drawn to yields still slightly higher than industrials and strengthening balance sheets.
Thursday, July 12, 2012
Could a credit card surcharge be coming?
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3 comments:
Credit card surcharges wouldnot be surprising at all, if credit card lending / issuing banks had their way they will be imposing all sorts of fees and charges on us. Hope our elected politicians standup for the voters, not big bankers
The author of your blogs and articles and contents is appreciating.
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If they push through with the credit card surcharge, many consumers will be discouraged to apply for or continue using a credit card. Hence, the quantity of credit card subscribers may plummet. I think aiming for higher revenues in one blow is not a good choice. It would be better to have low revenues but many consumers, than higher profits but few subscribers.
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