Senators Mary Landrieu and David Vitter decline to go along with bankers

Senators support lowering debit card 'swipe fees'

Despite intense lobbying efforts by Louisiana bankers, Sens. Mary Landrieu, D-La., and David Vitter, R-La., didn't change their position on a measure limiting so-called "swipe fees" charged by banks for debit card transactions.

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Clik here to view.View full sizeElaine Thompson, The Associated Press archiveFederal regulators proposed limiting debit card 'swipe fees' to 7 to 12 cents per transaction.

The banks had argued that the limits proposed by federal regulators, between 7 and 12 cents per transaction, would bring big profits to major retailers, but create financial problems for smaller community banks. Landrieu and Vitter backed the initial rules, included in financial reform legislation enacted in 2010, and voted against an amendment last week that would have required more study before new debit card rules could take effect.

Retailers argued that current rates, about 44 cents per transaction, are the highest in the world and represent an unjustified cash cow for banks.

Bruce Alpert can be reached at balpert@timespicayune.com or 202.857.5131. Jonathan Tilove can be reached at jtilove@timespicayune.com or 202.857.5125.