But banks in the United States warn that, as in Australia, American consumers may see the costs of using a credit card rise, and the benefits decline, if Congress passes legislation to reduce interchange fees.
As MasterCard explains in its registration statements filed with the Securities and Exchange Commission, if banks are forced to reduce interchange fees, it could make MasterCard a less appealing card option for them to offer customers.
Reducing interchange fees would cut profit at both the largest and smallest financial institutions, including community banks and credit unions, Mr. Clayton said.
Under pressure from regulators, le Groupement des Cartes Bancaires, which processes most domestic card transactions in France, has also reduced interchange fees, from 0.47% to 0.32% of the value of the transaction on average.Mr Durbin's amendment has cost the banks $6.6 billion-8 billion annually, according to a paper by the International Centre for Law and Economics (ICLE), a think-tank.
Our first good look at interchange regulation was in Australia in 2003, when the Reserve Bank of Australia (RBA) implemented regulation reducing interchange rates by 50percentt and eliminating rules forbidding retail merchants form charging fees at the checkout counter for customers who used payment cards.
Lane Assist with Junction View are two features that reduce highway interchange confusion and improve driving safety.
Interchanging the M4 domain alone caused a large reduction in activity of SWR1, and activity was also reduced by interchange of M5 and M3A domains individually, whereas M2 and M3B domain interchanges had minimal effects.
The Maugansville Road interchange was originally a full interchange, but was reduced to a partial interchange in 1968.
Although merchants deserve some say, they also benefit from the many advantages over cash or check, and interchange helps reduce the costs of cards to consumers and funds rewards programs.
The Titans were reduced to two interchange players when Simpkins came from the field soon after.
Over all, however, Mr. Bernanke said, the lower charges, known as interchange fees, would reduce the costs of debit transactions.
