The issue of revenue that banks and credit unions make from transactions on their debit cards moved from the obscure corners of the financial services industry into the national spotlight last week as the Federal Reserve's debit interchange cap came into effect.
The cap, which reduced debit card interchange for large card issuers from an average of 44 cents per transaction to an average of 24 cents, became operational Oct. 1.
At first the cap's advent seemed destined to be a side issue suitable to the financial services industry trade press. But the decision by Bank of America to start charging cardholders a $5 per month fee for the use of their debit cards catapulted it out of the wonky laps of economists and lawyers and onto the national stage.
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