Bloomberg News

KeyCorp Lowers Debit-Card Swipe Fee Revenue Loss to $50 Million

July 05, 2011

July 5 (Bloomberg) -- KeyCorp, Ohio’s second-largest bank, said revised U.S. curbs on debit-card swipe fees will cut interchange revenue by $50 million to $60 million, about half the damage the bank previously estimated.

The new figure includes a higher cap than the one originally set by the Federal Reserve Board plus an added fee to cover the cost of fraud, Cleveland-based KeyCorp said today in a filing with securities regulators. The lender said in December that the proposed rules would slice about $100 million of revenue from swipe fees, known as interchange, which merchants pay when consumers make purchases with debit cards.

Under pressure from banks, the Fed last week almost doubled the 12-cent ceiling that the central bank first suggested in September to 21 cents.

--Editors: Rick Green, William Ahearn

To contact the reporter on this story: Laura Marcinek in New York at lmarcinek3@bloomberg.net.

To contact the editor responsible for this story: David Scheer at dscheer@bloomberg.net.


Ebola Rising
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus