NEW YORK ?" CNNMoney.com addressed interchange fees over the weekend, detailing the battle between banks and merchants.

At issues, CNN wrote, is 12 cents per card swipe ?" the cap that the Federal Reserve wants to place on interchange fees ?" a limit that the banking industry strongly opposes, as it currently makes an average of 44 cents per transaction.

Banks currently make about $16 billion a year on the 44 cents per transaction fee, a total it said would drop by up to $13 billion if the cap is implemented.

Retailers, however, are applauding the cap, promising to pass along the savings to consumers.

"This is a huge step in curtailing out of control fees," said Rachel Wolf, a spokeswoman for the Merchants Payments Coalition. "Because retail is such a competitive industry, any savings retailers get, they are going to pass along to customers, because if you don't offer competitive prices, someone's just going to go across the street to the competitor."

The new rules are expected to take effect in July. As such, banks are spending large amounts lobbying against the Durbin Amendment.

"Many members in this body are being lobbied right now by banks and card companies to repeal this law, to undo the interchange reform that Congress passed last year. It is one of the most active lobbying efforts I've ever seen," said Senator Richard Durbin. "Normally the card companies and the big banks are used to getting their way in this town."

Banks are also cranking up efforts to scare consumers. Last week, JPMorgan Chase said it is considering denying all debit card purchases above $50 or $100 if the legislation takes effect.

"The debit card that we know and love today will never be the same again if this rule goes into effect," said Trish Wexler, a spokeswoman for the Electronic Payments Coalition, which represents Visa, MasterCard, credit unions and banks. "Some people will have to pay more per transaction, some people won't be able to make certain purchases, and customers are going to have a choice ?" do I switch to credit, go to a prepaid card and pay for extra fees, or go to a nontraditional bank if I don't have a credit card?"

CNNMoney queried why banks need more than 12 cents per transaction. According to the Fed, that is the amount per transaction that it takes to make the system run. However, the banks maintain they need additional money to help cover the costs associated with fraudulent charges.

The current fee structure is proportional to the transaction size. As such, they make more money on larger purchases. However, if they receive 12 cents even for big purchases, they said it would be harder to offset losses.

CNNMoney reader Tim Mayr said he would gladly seek another bank if his instituted a debit card spending cap. "They've been gouging the public for years, and now they're threatening to severely limit debit cards because they will only be able to charge a reasonable fee for debit transactions, instead of four or five times their actual transaction costs," he said. "That's nonsense. If any bank actually limits debit card transactions to $50 or $100, I'll eat my debit card!"