One of the great unknowns remaining in the Dodd-Frank act is the rate that banks will be able to charge for debit card transactions. The new law requires the Fed to set a rate by April 2011. To that end, it aims to issue a proposal soon. There is lot of posturing and counter-posturing underway, and much speculation as to how the Fed will act.

The New York Post notes that there are rumors circulating that the Fed will take a tough line. Some expect rates to drop by 40 to 60 percent. That would take a toll, even though some accuse banks of overstating the effects of the looming rate cut.

The Merchants Payments Coalition, who has long been at odds with banks over interchange fees, took the unusual step of publicly criticizing Bank of America's recent third-quarter earnings which claimed a large loss attributed to credit and debit card swipe fee reform. The group says the claims "dramatically overstate reality and represent a feeble attempt to divert attention from its mortgage foreclosure problems."

So the issue is heating up. All banks are no doubt thinking of ways to offset these losses.

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