Every time you make a plane reservation or rent a car or pay for concert tickets, you're asked to provide a credit card number. Liz Smiley provides a debit card number instead. Smiley has lived without a credit card for more than four years, and she doesn't miss it a bit.
The Federal Reserve on Thursday proposed a new rule that would dramatically cut the swipe fees that banks charge merchants when customers use debit cards. The move, which stems from a provision in the financial overhaul bill in July, could benefit stores. But banks say it could harm consumers.
Visa topped Wall Street's earnings expectations, as the credit-card giant smartly shifted its focus to debit cards, which consumers are using more frequently for non-discretionary purchases such as gas or food. The company boosted its revenue outlook for 2011 to boot.
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