dticorp
Joined: 19 Aug 2006
Posts: 1760
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| Posted: Thu Jan 20, 2011 11:14 am Post subject: PayPal Argues Against Fee Cap as Fed Decision Looms |
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PayPal Argues Against Fee Cap as Fed Decision Looms
PayPal Inc., the fastest-growing unit at online marketplace EBay Inc., said the Federal Reserve shouldn’t subject the company to a cap on debit-card transaction fees, a move that could threaten most of its U.S. revenue.
The Fed is seeking public comment about whether limits passed by Congress should apply to “non-traditional” payment systems such as PayPal that are vying for part of the $4 trillion U.S. market dominated by Visa Inc. and MasterCard Inc. PayPal’s business would be damaged if it’s regulated like payment-card networks, according to Patricia Hewitt, a director at consulting firm Mercator Advisory Group.
The central bank has suggested capping interchange, or “swipe” fees, at 7 cents to 12 cents for each debit-card transaction, replacing a formula that costs merchants about 1 percent of the purchase. The Fed raised the question of whether those curbs apply to PayPal last month in a proposed rule to enforce the financial industry overhaul passed by Congress.
Rest of the article here:
http://www.bloomberg.com/news/2011-01-19/ebay-s-paypal-tries-to-duck-debit-fee-cap-as-fed-decision-looms.html
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