Arik Hesseldahl in Forbes reports on the $3 billion settlements announced earlier this week in the debit card/retailer litigation.
“One of the predictions from this settlement has been that there will be lower costs for consumers,” Paur says. “Such reports of consumer savings may be delusional. I think it’s very possible that many institutions are likely to impose new fees associated with the cards either in the form of an annual fee or some other transaction fee. If the merchant savings aren’t passed on, we could wind up with a situation where consumers are actually paying more than they did before.”