Federal Reserve (a private company) – is about to add fees to use your DEBIT card – Ready to carry those big money purses again?


Rothschild, a London Banker, wrote a letter saying “It (Central Bank ) gives the National Bank almost complete control of national finance. The few who understand the system will either be so interested in its profits, or so dependent on its favours, that there will be no opposition from that class… The great body of the people, mentally incapable of comprehending, will bear its burden without complaint, and perhaps without even suspecting that the system is inimical (contrary) to their interests.” [The bankers created the legislation for the FED]


The FED began with approximately 300 people or banks that became owners (stockholders purchasing stock at $100 per share – the stock is not publicly traded) in the Federal Reserve Banking System. They make up an international banking cartel of wealth beyond comparison (Reference 1, 14). The FED banking system collects billions of dollars (Reference 8, 17) in interest annually and distributes the profits to its shareholders. The Congress illegally gave the FED the right to print money (through the Treasury) at no interest to the FED. The FED creates money from nothing, and loans it back to us through banks, and charges interest on our currency. The FED also buys Government debt with money printed on a printing press and charges U.S. taxpayers interest. Many Congressmen and Presidents say this is fraud (Reference 1,2,3,5,17).


March 26, 2011

Credit unions fight back against swipe fees

Chris Dorst
Star USA Federal Credit Union wants Congress to block the Federal Reserve from implementing new rules on debit card “swipe fees.”


CHARLESTON, W.Va. — Dan Smithson, president of Star USA Federal Credit Union in Charleston, wants Congress to put a stop to new regulations that could prompt small financial institutions to charge customers up to $60 a year for using their debit cards.

Smithson said credit unions would have to charge the extra fees to recoup revenue losses.

In response to the new law, the Federal Reserve has proposed rules that would cap the fees that merchants pay banks and credit unions for customers’ debit card transactions at 12 cents per swipe. The fees average about 44 cents a swipe.


Smithson said the proposed rules would unfairly penalize credit unions and community banks.

“As a result of this legislation, the merchants will receive greater profits in relation to the acceptance of debit cards, which in turn, will have to be passed on to consumers in the form of fees for checking accounts and debit cards,” Smithson said. “It is unrealistic that any merchant will pass these savings onto consumers.”

The Federal Reserve is scheduled to issue a final policy recommendation on April 21, and the new regulations would take effect July 1. The decision, however, could be delayed.

Earlier this month, Rep. Shelley Moore Capito, R-W.Va., introduced legislation to postpone the final swipe fee rule changes while federal agencies conduct a yearlong study of how the cap would affect consumers, banks and credit unions, and merchants.

Capito also wants the agencies to take a close look at debit transaction costs. Twenty-two Republicans and 20 Democrats — including Rep. Nick Joe Rahall, D-W.Va. — have signed on as sponsors of the legislation, called the Consumers Payment System Protection Act.

“My legislation is about ensuring that the price associated with running a debit card is fair to everyone,” Capito said in a prepared statement. “…The fee could go down, stay the same or increase, but the number will be based on reliable data instead of incomplete speculation.”

The Durbin Amendment — named for Sen. Dick Durbin, D-Ill., and part of last year’s congressional Wall Street reform package — requires debit card swipe fees to be “reasonable and proportional.”

Star City USA says the Federal Reserve set the 12-cent cap without considering that credit unions would incur additional expenses related to debit card fraud, insurance and collections.

Smithson and other credit union executives said the market should dictate the price of financial services — not the federal government.


“With the current system, financial institutions have been able to provide free checking and debit services to most consumers,” Smithson said.

Meanwhile, retailers have rallied in support of the changes, saying swipe fees are digging into their profits. More and more customers are using debit cards to pay for food and merchandise. On small purchases, the swipe fee often exceeds a merchant’s profit on the sale.

Smithson countered that when merchants agree to accept debit cards, they realize the must share in the transaction costs. Retailers benefit from debit card payments, he said, because


such payments, unlike personal checks, are guaranteed.

Swipe fees aren’t paid to VISA or MasterCard. Merchants pay the fees directly to the financial institutions that issue the debit cards. Subsequently, merchants are paying their fair share of the cost of the electronic payment system, Smithson said.

<adding these fees is just another way for the Federal Reserve bank – which is a private institution – to make a profit.  They have created a scheme where YOU pay to have the privilege of USING your own money.>


Credit unions in West Virginia are small businesses that will struggle if they lose money because of the proposed swipe fee changes, he said.

“If credit unions and community banks are prohibited from providing services at market driven prices, there could be reductions in the work force to offset the reduction of revenue,” Smithson said.

Star City USA supports Capito’s bill — and similar legislation in the U.S. Senate that calls for a two-year study. The Consumer Federation of America, National Education Association and NAACP also have asked federal officials to take a closer look at the proposed swipe fee changes, fearing that the new regulations could inadvertently harm low- and moderate-income consumers.

“There are too many unanswered questions surrounding the implementation of this new rule,” Capito said. “Simply put, the stakes are too high to let these changes go forward if there’s a chance consumers will be put in the losing column.”

Reach Eric Eyre at erice…@wvgazette.com or 304-348-4869.





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