Ethical Controversy
Recent financial reform legislation capped the fees that banks are allowed to charge retailers when customers make purchases with debit cards. Down from an average of 44 cents per transaction, the top "swipe" fee is now 21 cents. Retailers, who either pass the fee on to consumers or absorb it, think the cap is still too high. Banks, claiming the reduction is costing them billions, tried making up the difference with new charges to customers, including Bank of America's ill-fated $5 monthly debit card fee.
Should debit card swipe fees be capped? Discuss 2 pros AND 2 cons.
Does having a debit card increase the likelihood that you will spend more? Why or why not?