Big banks (and not-so-big ones too) were up in arms against the cap in debit-card transaction fees that's scheduled to take effect on July 21, but they tasted defeat when the Senate last week voted against a proposed postponement. Fees will go down from the current average of 44¢ per transaction to just 12¢.

Big banks are a formidable adversary, but Wal-Mart and Target were among their opponents on this issue.  Merchants, restaurants and small businesses that process point-of-sale debit cards will benefit from the new lower fees.

 . . . given that many restaurants in the post-recessionary marketplace are operating on extremely thin margins, the rising debit-card fees posed one of the industry’s fastest-rising costs, said the National Restaurant Association.  — NRN

Although the Senate defeat is a major victory for merchants and restaurateurs, the opposition is persistent.

The debit caps could still be derailed before July 21. The St. Louis-based U.S. 8th Circuit Court of Appeals is scheduled to hear arguments next week in a case filed by TCF Financial Corp. (TCB) The Wayzata, Minnesota-based bank has appealed a lower court ruling that denied the lender’s request for an order suspending the caps. — Bloomberg