NEW YORK ( TheStreet) -- Banks could lose up to $25 billion a year in revenue due to changes in payment regulations included in the Dodd-Frank Wall Street Reform.
A study by The Boston Consulting Group estimates that The Durbin Amendment, The CARD ACT and Regulation E would eliminate 29 percent of retail-transaction revenues for U.S. financial institutions.
Bank of America (BAC - Get Report) , JP Morgan Chase (JPM - Get Report) and Citigroup (C - Get Report) have already eliminated free checking and started charging fees for checking accounts to deal with the losses.
The Durbin Amendment would set limits on debit-card interchange rates and get rid of network exclutivity between merchants and banks. Meanwhile, The CARD Act requires banks to disclose more to consumers about rates and fees. Regulation E would require customers' permission to charge overdraft fees.--Written by Maria Woehr in New York.
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