Card Rules May Cost Banks $25B Annually: Report
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) , JP Morgan Chase (JPM) and Citigroup (C) 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.To contact the writer of this article, click here: Maria Woehr. To follow the writer on Twitter, go to http://twitter.com/newsgirlmw. To submit a news tip, send an email to: tips@thestreet.com.
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