Banks preparing to charge for debit card usage
 

[url=http://www.pennlive.com/midstate/index.ssf/2011/09/some_banks_starting_to_charge.html]Some banks starting to charge customers to use debit cards | PennLive.com[/url]

:doh:

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.

Re: Banks preparing to charge for debit card usage
 

[quote=mooby;842531][url=http://www.pennlive.com/midstate/index.ssf/2011/09/some_banks_starting_to_charge.html]Some banks starting to charge customers to use debit cards | PennLive.com[/url]

:doh:

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.[/quote]

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.

Re: Banks preparing to charge for debit card usage
 

[quote=Dirtbag59;842533]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.[/quote]

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.

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.

Re: Banks preparing to charge for debit card usage
 

[quote=Chico23231;842539]bank regulation called Dodd-Frank to thank for this one. [B]You seriously didnt think the finacial industry was gonna cut its bottomline in response?[/B] Big corporations always win in this country.[/quote]

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

Re: Banks preparing to charge for debit card usage
 

[quote=mooby;842541]Where was that implied? Of course banks would try to make up for the loss of profit elsewhere.[/quote]

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

Re: Banks preparing to charge for debit card usage
 

The little man always suffers.

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.

Re: Banks preparing to charge for debit card usage
 

[quote=Alvin Walton;842547]This will piss me off it it hits my bank. We use a debit card almost every day.[/quote]

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.

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.

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.

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

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.

Re: Banks preparing to charge for debit card usage
 

Be careful about using credit cards instead.
[url=http://money.cnn.com/2011/09/30/pf/bank_of_america_fee/]Bank of America fee to benefit bank, despite angry customers - Sep. 30, 2011[/url]

Re: Banks preparing to charge for debit card usage
 

[quote=Chico23231;842539]bank regulation called Dodd-Frank to thank for this one. You seriously didnt think the finacial industry was gonna cut its bottomline in response? [B]Big corporations always win in this country.[/B][/quote]

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.

Re: Banks preparing to charge for debit card usage
 

0 Blitz! 0 Blitz! 0 Blitz! 0 Blitz! 0 Blitz! 0 Blitz! EVERYBODY! 0 Blitz! 0 Blitz! ..............0 Blitz?

Re: Banks preparing to charge for debit card usage
 

[quote=Dirtbag59;843371]0 Blitz! 0 Blitz! 0 Blitz! 0 Blitz! 0 Blitz! 0 Blitz! EVERYBODY! 0 Blitz! 0 Blitz! ..............0 Blitz?[/quote]

you're constantly comic relief. :headbange

Re: Banks preparing to charge for debit card usage
 

I often wonder how my bank even makes any money off my accounts. With one bank I have 5 checking accounts with free checks both personal and business and they don't charge me any service charges. I have only purchased business checks once last year and this time the bank paid.

Re: Banks preparing to charge for debit card usage
 

[quote=firstdown;844230]I often wonder how my bank even makes any money off my accounts. With one bank I have 5 checking accounts with free checks both personal and business and they don't charge me any service charges. I have only purchased business checks once last year and this time the bank paid.[/quote]


You're a business man and you don't know what your money sitting on your account does for them?

Well, they could use it to make loans to people who can't afford it, they could issue credit cards to broke college students, or they could lend it to other businesses on the verge of going out of business. With the measly cost of checking and checkbook they could make prime rate return on your money or lose it all like most banks did the last few years.

Re: Banks preparing to charge for debit card usage
 

What? Banks don't make a killing on checks and nickle & dime fees? ;)

Re: Banks preparing to charge for debit card usage
 

[quote=saden1;844262]You're a business man and you don't know what your money sitting on your account does for them?

Well, they could use it to make loans to people who can't afford it, they could issue credit cards to broke college students, or they could lend it to other businesses on the verge of going out of business. With the measly cost of checking and checkbook they could make prime rate return on your money or lose it all like most banks did the last few years.[/quote]

That was poorly worded. I should have said "I'm surprised my banks don't charge me for any services. Three of those checking accounts I carry little to no money. Its more of a legal thing with some policies I write we cannot commingled the monies with other customers premiums.

Re: Banks preparing to charge for debit card usage
 

Am I the only one that thinks this thread is about Brandon Banks whenever taking a quick glance at it?

Re: Banks preparing to charge for debit card usage
 

[quote=hooskins;844416]Am I the only one that thinks this thread is about Brandon Banks whenever taking a quick glance at it?[/quote]


Ive been fulled at least 3 times, including most recently because of your reply!!!

Re: Banks preparing to charge for debit card usage
 

[quote=mlmpetert;844420]Ive been [B]fulled at least 3 times[/B], including most recently because of your reply!!![/quote]

Is that breakfest, lunch and dinner?

Re: Banks preparing to charge for debit card usage
 

I'm about to switch to Navy Federal, I apparently spoke too soon when I said Wells Fargo hasn't charged me any dumb fees yet. They just charged me 12.50 in an "overdraft transfer fee", so apparently even if you have money in a savings account to backup your checking, they're still gonna charge you a ridiculous fee just to transfer it to your checking to cover the purchase. I only think it's ridiculous because the fee in question actually cost more than the purchase I made.

:soapbox:

Re: Banks preparing to charge for debit card usage
 

[quote=firstdown;845082]Is that breakfest, lunch and dinner?[/quote]

Son of a gun.....

Re: Banks preparing to charge for debit card usage
 

This is a simple solution......

All BOA customers need to take their money elsewhere and close their accounts. Maybe if all the other Big Banks see how the general public will not tolerate this then the other banks will be scared to pull the trigger on this extra fee also.

If I'm correct it's only BOA right now so if the other see a mass exodus they will not add the fee for fear of losing customers and money.

Re: Banks preparing to charge for debit card usage
 

I'm leaving Bank of America. My parents set me up with a savings account at Navy Federal awhile back so everything else I have with Bank of America is going to be moved there. I will also get a debit card and an ATM card that will reimburse me for not using their ATM's.

Re: Banks preparing to charge for debit card usage
 

[quote=SBXVII;845250]This is a simple solution......

All BOA customers need to take their money elsewhere and close their accounts. Maybe if all the other Big Banks see how the general public will not tolerate this then the other banks will be scared to pull the trigger on this extra fee also.

If I'm correct it's only BOA right now so if the other see a mass exodus they will not add the fee for fear of losing customers and money.[/quote]

You do realize that the fee was imposed thanks to [URL="http://reason.com/blog/2011/09/30/new-debit-card-fees-is-it-an-u"]a law passed by Congress,[/URL] right?

I have a better idea. Why not make it clear to Congress that we will no longer accept short-sighted interference into the market by placing arbitrary rules that favor one side over the other, creating an outcome that will only wind up costing the consumer money?

That's what happened here: Sen. Dick Durbin adds an amendment to the treacherous Dodd-Frank bill giving the advantage to retailers in a long dispute over who bears the cost of transferring funds electronically. The result? Banks get stuck with most of the bill, so they do what businesses naturally do when they have to answer to shareholders -- pass the expense to the consumer.

So don't blame the banks, blame Congress for screwing around with the free market.

Re: Banks preparing to charge for debit card usage
 

[quote=Beemnseven;845279]You do realize that the fee was imposed thanks to [URL="http://reason.com/blog/2011/09/30/new-debit-card-fees-is-it-an-u"]a law passed by Congress,[/URL] right?

I have a better idea. Why not make it clear to Congress that we will no longer accept short-sighted interference into the market by placing arbitrary rules that favor one side over the other, creating an outcome that will only wind up costing the consumer money?

That's what happened here: Sen. Dick Durbin adds an amendment to the treacherous Dodd-Frank bill giving the advantage to retailers in a long dispute over who bears the cost of transferring funds electronically. The result? Banks get stuck with most of the bill, so they do what businesses naturally do when they have to answer to shareholders -- pass the expense to the consumer.

So don't blame the banks, blame Congress for screwing around with the free market.[/quote]
But but but more regulation is always better. Regulation looks out for the little guys. Us little guys couldn't possibly make it without the gov't regulating all the mean nasty businesses who wish to actually make money from us poor innocent and free-ride-deserving consumers.

Lesson of the day...gov't involvement has a tendency to screw sh*t up. For every problem it purports to fix it creates at least one other new problem. Sometimes these new problems are worse than the original problem. And the last people on Earth smart enough to figure out which "solutions" will work and which won't are...you guessed it ..politicians.

Re: Banks preparing to charge for debit card usage
 

Beemnseven,

Just because the law allows them to add the charge or because of loop holes in laws does not mean every business must follow suit. I'm guessing all the banks probably sat down and agreed to add this but BOA was the first to implement it and if the public reacts fast enough the other banks will think twice before implementing the same sur charge.

That's all I'm saying.

Re: Banks preparing to charge for debit card usage
 

[quote=SBXVII;845315]Beemnseven,

[B]Just because the law allows them to add the charge or because of loop holes in laws does not mean every business must follow suit. [/B]I'm guessing all the banks probably sat down and agreed to add this but BOA was the first to implement it and if the public reacts fast enough the other banks will think twice before implementing the same sur charge.

That's all I'm saying.[/quote]

So the banks have to suck it up and eat the loss? That's not the way business works.

The law didn't "allow them to add the charge". The law arbitrarily interfered with and capped what banks could get from retailers in interchange fees. Bank of America did what every single business has to do when faced with a loss in revenue. They find a way to make up for it.

Whether the cause is higher taxes, higher production costs, higher labor costs, or capricious, misguided dictates from Congress -- all businesses [B]MUST[/B] make up the lost revenue somehow. They don't just bend over and take it.