December 30, 2010
As reported by CNNMoney.com’s Catherine Clifford, the Federal Reserve recently proposed a cap on “swipe fees” that could significantly reduce a cost that small businesses pay to credit card companies.
When a customer pays with a credit or debit card, the retailer pays a fee to the credit card company called a “interchange fee.” These fees can quickly add up for for small business owners.
The Federal Reserve’s proposed cap could cut those expenses for small businesses by up to 80-90% according to a J.P. Morgan research note.
“The Fed proposal stands to put more money back into the hands of small-businesses owners – the folks who are out there trying to stay afloat and hire new employees,” said Kyle W. Kempf, Senior Director of Government Affairs at the National Small Business Association, in an e-mail.
To read the complete article go to: Hope for small businesses on debit-card fees