New York, September 30 (FinanceEnquiry.com) – The Federal Reserve’s rules limiting swipe fees or interchange will be effective next month. Bank of America (NYSE: BAC) is planning to introduce a $5 monthly charge for some debit card users in order to recover the revenue that it will lose because of the above rule. It will be joining its rivals like JPMorgan Chase (NYSE: JPM), Wells Fargo (NYSE: WFC) and SunTrust Banks (NYSE: STI) in levying this fee.
Anne Pace, a Bank of America spokeswoman, said that customers with lower-tiered accounts, including the bank’s online banking option, would be assessed for fee for debit-card purchases in January. Clients with premium accounts including those linked to Merrill Lynch(NASDAQ: PGEB) brokerage and those using cash machine withdrawals will not be affected, she said.
Representatives of the banking industry said that the changes will penalize lower-income consumers but will enrich merchants. Trish Wexler, a spokeswoman for the Electronic Payments Coalition, which represents banks and networks, said “One of the unintended consequences is that this would disproportionately harm lower-income individuals,” and added that “If you can’t afford $5 a month, you’re going to stop using your debit card.”
The Fed capped debit-card swipe fees at 21 cents, which starts Saturday. Issuers will be able to tack on five basis points, or 0.05 percent, of each transaction, or almost 2 cents based on the average debit purchase of $38, and a conditional 1-cent adjustment for lenders that follow fraud-prevention standards.
New York, March 1 (FinanceEnquiry.com) – Analyst Eric Katzman at Deutsche Bank Securities reiterates BUY rating on the shares of Dean Foods (NYSE: DF). The 12-month target price is set to $21.
In a...
New York, February 28 (FinanceEnquiry.com) – Seeing that Federal Reserve Chairman Ben Bernanke stayed unwavering in supporting the stimulus policy of Fed and data signaled to economic development, stocks...
New York, February 27 (FinanceEnquiry.com) – Analyst Joshua Shanker at Deutsche Bank Securities reiterates BUY rating on the shares of American International Group, Inc (NYSE: AIG). The 12-month target price has...
New York, February 26 (FinanceEnquiry.com) – Analysts at Deutsche Bank Securities reiterate their BUY rating on the shares of Portland General Electric Company (NYSE: POR). The 12-month...
New York, December 28 (FinanceEnquiry.com) – Striking a low of four-month as a looming fiscal crisis sapped what had been a rising sense of sanguinity on the subject of the economy, US customer...
New York, December 27 (FinanceEnquiry.com) – Analysts at Citigroup reiterate their BUY rating on the shares of Carnival Corporation (NYSE: CCL). The 12-month target price is set to $44.
In a...
New York, December 26 (FinanceEnquiry.com) – Analysts at Deutsche Bank Securities reiterate their BUY rating on the shares of TripAdvisor Inc (NASDAQ: TRIP). The 12-month target price is set to...
New York, December 24 (FinanceEnquiry.com) – Analysts at JP Morgan reiterate their OVERWEIGHT rating on the shares of The Carlyle Group (NASDAQ: CG). The 12-month target price has been raised to some...
New York, December 24 (FinanceEnquiry.com) – Analysts at Taglich Brothers reiterate their SPECULATIVE BUY rating on the shares of Sonic Foundry (NASDAQ: SOFO). The 12-month target price has been reduced...
New York, December 21 (FinanceEnquiry.com) – Analysts at Deutsche Bank Securities report on Retailing / Hardlines - Hardline Headlines.
In a research note published on December 17, the analysts mention that...
