Card processing fees are a parasite on the back of the American merchants and therefore American consumers. Although many think the FED can only turn a dial back and forth on rates, the FED actually has a large bag of tools to deal with inflation. Last Wednesday, the FED proposed lowering the card processing fee cap from $0.21 and 0.05% of transaction amount to $0.144 and 0.04% of the transaction. Lowering the ad valorem (according to value) tax would be a big win for all merchants across the board. For every $1000 dollars in credit/debit card sales there would be a savings of up to 10 cents per transaction; just on that decrease alone let alone the cap lowering, which merchants could pass on to consumers or have increased ability to employ people.
So who would be brazen enough to stand against this positive change? The only people who stand to be encumbered by this are banks, who argue this would not be enough to cover fraud. Federal Reserve Governor Michelle Bowman objected to the change stating “the benefits to consumers – may not be realized.” Rich coming from the Fed Governor whose family OWNS A BANK with credit cards and debit cards which stand to lose some revenue from every swipe, insert, and tap.
My country tis of thee
Sweet land of usury
Of thee I sing
Land where Sam Bankman lied
Land of the hedge fund pride
From every mountain side
Let rifles ring!
