Federal Reserve considers limiting debt card fees

February 17, 2011 6:45:05 PM PST
The nation's banking industry is warning it may have to increase charges for checking accounts and other services if a new proposal goes through--fees which are already as high as $30 at some banks.

The Federal Reserve is considering limiting the fees banks charge merchants to 12 cents per swipe of a debt card. Right now, merchants pay 1 to 2 percent each time you use your debit card for purchases.

The banking industry is lobbying hard to keep it that way while small businesses are pushing for these new limits. The final decision is expected by April 21.