NEW YORK ( LowCards.com) -- Debit card interchange fees will decrease Oct. 1. This is good news for merchants who have long complained that the interchange fee, also known as a swipe fee, was too high and cut into their profits. The new regulations are helpful, but the interchange fee will continue to be a complicated and costly issue between retailers, banks and credit card processors.Consumers give little thought to the interchange fee charged every time they swipe their debit or credit card, but the fee can take a large bite out of a retailer's profit. The interchange fee averages 44 cents per transaction; the reduced fee will be 21 cents plus an additional amount to cover losses from fraud.
|Swipe fee rules don't account for returned items, but many merchants are reluctant to make up for it by charging restocking fees that could anger customers.|