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"Durbin essentially moves the cost of debit away from merchants, and now it's more focused on consumers," said Beth Robertson, director of payments research at Javelin.
But merchants have complained that as the cost of debit fees — a charge for processing payments — has risen in recent years, they have had to add it to the prices they charge.
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"The Fed did a very credible job of investigating what the incremental costs of debit card transactions were," Mr. Duncan said.
Over all, however, Mr. Bernanke said, the lower charges, known as interchange fees, would reduce the costs of debit transactions.
Swipe fee regulation will still allow banks to cover the actual costs of debit transactions but will rein in the banks' excessive profit-taking.
The net cost of the debit put spread amounts to $1.16 per contract.
The net cost of the debit spread amounts to $1.27 per contract.
The net cost of the debit call spread amounts to $4.72 per contract.
The net cost of the debit spread amounts to $2.29 per contract, positioning the investor to breakeven given an 8.15% rally in shares to $42.29 by expiration.
A recent U.S. law (the Durbin Amendment) reduced the cost of some debit card transactions.
Reprints Related topics Communications Asia East Asia JapanThe system is cheap: shops need only to buy a small calculator-size contraption costing roughly $200, or one-tenth of the cost of a debit-card machine.
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