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.
In a...Stocks Mount on Chairman Ben’s remarks - February 28, 2013
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...Deutsche Bank Securities Reiterates BUY Rating on American International Group (NYSE: AIG), Target Price Raised - February 27, 2013
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...Deutsche Bank Securities Reiterates BUY Rating on Portland General Electric Company (NYSE: POR) - February 26, 2013
In a...Deutsche Bank Securities Reiterates BUY Rating on TripAdvisor (NASDAQ: TRIP) - December 25, 2012
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...Taglich Brothers Reiterates SPECULATIVE BUY Rating on Sonic Foundry (NASDAQ: SOFO), Target Price Reduced - December 24, 2012
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...Deutsche Bank Securities Reports on Retailing/Hardlines – Hardline Headlines - December 20, 2012
In a research note published on December 17, the analysts mention that...