Banks preparing to charge for debit card usage

mooby · 10-01-2011, 02:50 AM

Some banks starting to charge customers to use debit cards | PennLive.com

I suppose I'm one of the relatively lucky ones in that I don't have fees charged to my checking account (yet, mainly because I live within my means), but if this happens to me I'm just going to switch to a credit union.

It's like they say, once you stop a leak another one springs up elsewhere. The only thing interesting about this from my perspective is wondering if this will end up pissing enough consumers off that it cuts into the banks' bottom line. Doubtful imo, but you never know.

Dirtbag59 · 10-01-2011, 03:32 AM

Quote:

Originally Posted by mooby

Some banks starting to charge customers to use debit cards | PennLive.com

I suppose I'm one of the relatively lucky ones in that I don't have fees charged to my checking account (yet, mainly because I live within my means), but if this happens to me I'm just going to switch to a credit union.

It's like they say, once you stop a leak another one springs up elsewhere. The only thing interesting about this from my perspective is wondering if this will end up pissing enough consumers off that it cuts into the banks' bottom line. Doubtful imo, but you never know.

A lot of them make big money selling the raw data they get regarding purchases and spending habits (which gets broken down by age, location, and gender). Charging people to use their debit card is a classic having your cake and eating it too scenario.

mooby · 10-01-2011, 07:25 AM

Quote:

Originally Posted by Dirtbag59

A lot of them make big money selling the raw data they get regarding purchases and spending habits (which gets broken down by age, location, and gender). Charging people to use their debit card is a classic having your cake and eating it too scenario.

True but I think the main reason they're doing this is to make up for all the lost revenue as a result of the cap being put on fees banks charge retailers every time a person swipes their debit card. Since the cap is at 24 cents and the average fee before was like 44 cents banks have to make up that lost revenue somewhere else.

Chico23231 · 10-01-2011, 07:28 AM

bank regulation called Dodd-Frank to thank for this one. You seriously didnt think the finacial industry was gonna cut its bottomline in response? Big corporations always win in this country.

mooby · 10-01-2011, 07:33 AM

Quote:

Originally Posted by Chico23231

bank regulation called Dodd-Frank to thank for this one. You seriously didnt think the finacial industry was gonna cut its bottomline in response? Big corporations always win in this country.

Where was that implied? Of course banks would try to make up for the loss of profit elsewhere.

Chico23231 · 10-01-2011, 07:54 AM

Quote:

Originally Posted by mooby

Where was that implied? Of course banks would try to make up for the loss of profit elsewhere.

U know something funnier...this cost will not get pass down to those who have a decent deposit relationship with the bank. So the cost will be passed down to the poor, working class, and middle america.....this is how regulation work.

The big corporations still make money , and the upper middle, rich and wealthy will not get hit with the fees cause they will bitch and threaten to move money. So the big corporations help their stock price and their big stock holders previously mentioned upper middle, rich and wealthy win there again. Thats how this country works...the government in cohots with the haves

Mattyk · 10-01-2011, 09:36 AM

The little man always suffers.

Alvin Walton · 10-01-2011, 09:42 AM

This will piss me off it it hits my bank. We use a debit card almost every day.

Chico23231 · 10-01-2011, 10:48 AM

Quote:

Originally Posted by Alvin Walton

This will piss me off it it hits my bank. We use a debit card almost every day.

Yeah, I wonder how visa and mastercard will react...i suspect they will lower merchant service fee. People never carry cash anymore...i know i dont.

Interesting fact, people tend to purchase more when paying with debit cards vs cash. So if more people go back to using cash to avoid the fee, could hurt the economy indirectly being consumption based.

Mattyk · 10-01-2011, 11:15 AM

The concept of charging someone to use their own money is just ludicrous. Personally I used my credit card for everything and pay off the balance each month. If I wasn't doing that already I'd be considering making that switch now.

saden1 · 10-01-2011, 02:35 PM

I understand that there is no such thing as free lunch but also have no problem switching banks.

If they want to have my money free of charge and use it to make loans and other leveraged investments the least they can do is not charge me to have access to my dough.

DynamiteRave · 10-01-2011, 07:06 PM

I bank with Citibank who's already ridiculous. So I wouldn't be surprised if they start charging to use the debit option. Few years ago the apr on my credit card shot up from 11% to 18%. I pay on time so they dumped it down to 16% a year or two ago. But I'm still paying ridiculous interest every month. I'm thinking about calling them and asking to see if they can lower it anymore considering I've had this stupid credit card since I was about 21-22 and I've never paid late.

I get charged $8.50 monthly service charge for my checking account. I have a debit card but sometimes I use the credit option. Guess I'll always be using the credit option

JPPT1974 · 10-01-2011, 08:45 PM

There is talk that people that used a certain debit card will be charged $5 a month, along with it totaling up to $60 a year! Forget the name of the credit card but think, it could be a Visa.

Dirtbag59 · 10-01-2011, 10:22 PM

Be careful about using credit cards instead.
Bank of America fee to benefit bank, despite angry customers - Sep. 30, 2011

Beemnseven · 10-02-2011, 09:37 AM

Quote:

Originally Posted by Chico23231

bank regulation called Dodd-Frank to thank for this one. You seriously didnt think the finacial industry was gonna cut its bottomline in response? Big corporations always win in this country.

Exactly right. But guess what? If they don't "win" they're out of business.

Middle America, the poor, and the working class may hate it, but, that's the way businesses exist. If they don't make a profit, they disappear. They have to answer to their shareholders. The first person who decides to be charitable and eats the loss in the face of a loss of revenue, the shareholders will say "see ya" and it's on to the next dude who makes sure they stay in the black by the widest possible margin.

10-01-2011, 02:50 AM	#1
mooby MVP Join Date: Mar 2005 Location: NoVa Age: 25 Posts: 11,724	Banks preparing to charge for debit card usage Some banks starting to charge customers to use debit cards \| PennLive.com I suppose I'm one of the relatively lucky ones in that I don't have fees charged to my checking account (yet, mainly because I live within my means), but if this happens to me I'm just going to switch to a credit union. It's like they say, once you stop a leak another one springs up elsewhere. The only thing interesting about this from my perspective is wondering if this will end up pissing enough consumers off that it cuts into the banks' bottom line. Doubtful imo, but you never know.

10-01-2011, 07:28 AM	#4
Chico23231 MVP Join Date: Mar 2009 Location: Richmond, VA Age: 37 Posts: 10,347	Re: Banks preparing to charge for debit card usage bank regulation called Dodd-Frank to thank for this one. You seriously didnt think the finacial industry was gonna cut its bottomline in response? Big corporations always win in this country. __________________ Ready for the Offseason

10-01-2011, 09:36 AM	#7
Mattyk ‎\m/ Join Date: Feb 2004 Age: 41 Posts: 78,844	Re: Banks preparing to charge for debit card usage The little man always suffers. __________________ Support The Warpath! \| Warpath Shop

10-01-2011, 09:42 AM	#8
Alvin Walton Playmaker Join Date: Sep 2010 Location: Holland, Michigan Posts: 4,047	Re: Banks preparing to charge for debit card usage This will piss me off it it hits my bank. We use a debit card almost every day. __________________ REDSKINS FAN SINCE 1968

10-01-2011, 11:15 AM	#10
Mattyk ‎\m/ Join Date: Feb 2004 Age: 41 Posts: 78,844	Re: Banks preparing to charge for debit card usage The concept of charging someone to use their own money is just ludicrous. Personally I used my credit card for everything and pay off the balance each month. If I wasn't doing that already I'd be considering making that switch now. __________________ Support The Warpath! \| Warpath Shop

10-01-2011, 02:35 PM	#11
saden1 Eternally Legendary Join Date: Feb 2004 Location: Seattle Age: 34 Posts: 9,832	Re: Banks preparing to charge for debit card usage I understand that there is no such thing as free lunch but also have no problem switching banks. If they want to have my money free of charge and use it to make loans and other leveraged investments the least they can do is not charge me to have access to my dough. __________________ "The Redskins have always suffered from chronic organizational deformities under Snyder." -Jenkins

10-01-2011, 07:06 PM	#12
DynamiteRave MVP Join Date: Dec 2005 Location: Washington DC Age: 27 Posts: 11,706	Re: Banks preparing to charge for debit card usage I bank with Citibank who's already ridiculous. So I wouldn't be surprised if they start charging to use the debit option. Few years ago the apr on my credit card shot up from 11% to 18%. I pay on time so they dumped it down to 16% a year or two ago. But I'm still paying ridiculous interest every month. I'm thinking about calling them and asking to see if they can lower it anymore considering I've had this stupid credit card since I was about 21-22 and I've never paid late. I get charged $8.50 monthly service charge for my checking account. I have a debit card but sometimes I use the credit option. Guess I'll always be using the credit option __________________ Establishment, establishment, you always know what's best. "We're officially horrible." -RedskinRat I'm a chick, damnit.

10-01-2011, 08:45 PM	#13
JPPT1974 Special Teams Join Date: Apr 2009 Posts: 170	Re: Banks preparing to charge for debit card usage There is talk that people that used a certain debit card will be charged $5 a month, along with it totaling up to $60 a year! Forget the name of the credit card but think, it could be a Visa. __________________ RIP Jim and Geoff!

10-01-2011, 10:22 PM	#14
Dirtbag59 Naega jeil jal naga Join Date: Jan 2006 Location: Atlanta, Georgia From: Silver Spring, Maryland Age: 28 Posts: 14,023	Re: Banks preparing to charge for debit card usage Be careful about using credit cards instead. Bank of America fee to benefit bank, despite angry customers - Sep. 30, 2011 __________________ Flacco is 1337 Fanclub President

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Banks preparing to charge for debit card usage

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