Archive for the ‘Banking News’ Category

PayPal makes its revenue by charging merchants a fee related to purchase prices.  These fees typically range from 1.9% to 2.9% in addition to a fixed $0.30 rate.  These fees should be interpreted by the Federal Reserve as interchange fees.

The Federal Reserve central bank has suggested capping interchange, or “swipe” charges, for each debit-card transaction, to $0.07 to $0.12 each.  This will replace the previous formula which charges merchants about 1% of the purchase. Read the rest of this entry »

Wells Fargo & Co.’s credit card portfolio shrank somewhat in 2010 as charge-offs declined sharply, the San Francisco-based company said Jan. 19 when announcing fourth-quarter earnings. (Source)