October 5, 2011
Consumers will be happy to know that the Federal Reserve has set limits on the rates for credit card swipe fees that the banks have been charging the retailers, effective October 1, 2011.
As a result, credit card processing fees can no longer exceed twenty-one cents per transaction and 0.05% of the purchase price. This is much lower than the previous rate of from 1% – 2% of the transaction. The only drawback to this is that the banks will charge the maximum fee for purchases on small ticket items.
This new ruling is expected to save consumers about $7 billion and to help stimulate the economy. In retaliation, however, the Bank of America is charging a $5.00 monthly fee on debit cards and the other banks may follow suit.
This is one of the last regulations that the Federal Reserve Board is enacting in an attempt to regulate the banking industry. There have been many reforms over the last two years which were enacted to reduce the fees that consumers were paying for banking services. However, the bankss seem to create more fees on other products in an effort to recoup their losses.
July 21, 2009
Photo by Bluex Image, Courtesy of Stock Exchange
CIT bank received
a pledge of $3 billion from its shareholders to keep it from filing for bankruptcy. It will use $1 billion of it to pay a debt due in August. Although this is a fortunate event, it may still not be enough to keep it the red and the FDIC has indicated it may close the bank down.
The U. S. conference Board has expressed optimism that the economy is showing signs of recovery and this may boost consumer confidence. S & P 500 quarterly earnings are 15% higher than expected.
Across the seas, China has been reporting since March that they are showing signs of recovery as many of the factories are reopening and no more migrant workers are returning home.
November 14, 2008
Since my backgound is in financial services, I will be speaking from a financial perspective. I am very concerned as are most people are, about the state of the economy. As a nation we are suffering from the consquences of having too much debt. Did anyone ever think that this attitude would catch up to us at some point in time?
I am hoping that someone has the answer to this problem. We have to manage the debt that we have in this country. Not only has it affected this country, but it has affected other countries as well. Debt has become a way of life for us. The only way to reduce or eliminate it is to stop desiring the things that would lead to living a lavish lifestyle. This is going to take some discipline. We’ll be suffering from withdrawal symptoms, but the longer we subject ourselves to this process, the easier it will be to say “no” to more spending.
Children should be educated on handling debt and using credit cards responsibly. Ideally, they should not be approached by the banks unless they understand the responsibilities that go along with using them. However, there are reports that the banks are targeting teens as well as college students about their services.
Press Release: Gail Cavanaugh’s Business Solutions Informs Teens about Credit Cards
© Gail Cavanaugh and Cavanagh Business Solutions, 2008. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Gail Cavanaugh and Cavanaugh Busines Solutions Blog with appropriate and specific direction to the original content.
Kids waiting by Anne Bradshaw, courtesy of Morguefile