WASHINGTON, D.C. - Retailers and bankers have ramped up lobbying over who will benefit and who will pay when the Federal Reserve lowers debit-card transaction fees, the Associated Press reports. With Americans swiping debit cards 38 billion times annually, a lot of money is at stake--$16 billion in yearly revenue that merchants give to card issuers and banks.

On the financial services side, banks claim that slashing debit card fees will lead to fee increases or additions to other banking services, such as eliminating free checking accounts. On the retail side, stores point out that reducing fees will help them to discount merchandise and grow their businesses.

Current debit card fees are between 1 percent and 2 percent of each purchase price, with a 44-cent average. The Fed??s proposal would limit that amount to 12 cents, with smaller financial institutions allowed to charge more. Banks are asking for Congress to hold off on implementation of the change.

Patrick Lewis, who co-owns 13 Oasis Stop 'N Go stores, dropped by his Idaho legislators last week during NACS Day on the Hill visits to Congress. Lewis said he shells $275,000 annually in debit card fees. "I don't think her boss is necessarily on our side," he said after talking to an aide with Rep. Mike Simpson (R-ID). "But maybe if we provide enough information it will change."

The Fed has until April 21 to issue a final rule, which would be implemented in three months?? time. Last week, Sens. Jon Tester (D-MT) and Bob Corker (R-TN) indicated they will sponsor a bill that would push back for two years the implementation of debit-card fee limits.