Senate passes amendment on debit and credit card swipe fees

Retailers won a long-sought victory late Thursday as the Senate approved a measure that would give them more power over the fees they pay to banks each time shoppers swipe a credit or debit card.

The controversial amendment by Sen. Richard J. Durbin (D-Ill.) represents one element of a broader overhaul of financial regulations, but it is a piece that ordinary consumers could feel most directly. It passed 64 to 33, with 17 Republicans joining dozens of Democrats.

The measure allows stores to give customers discounts for paying with cash or using cards with cheaper fees, and it would permit retailers to set price thresholds for accepting credit cards. It also tasks the Federal Reserve with crafting regulations for determining whether swipe fees for debit cards are "reasonable and proportional."

"Small businesses and their customers will be able to keep more of their own money," Durbin said in a statement. "Making sure small businesses can grow and prosper is vital to putting our country back on solid economic footing."

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