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-   -   Banks preparing to charge for debit card usage (http://www.thewarpath.net/debating-with-the-enemy/44416-banks-preparing-charge-debit-card-usage.html)

mooby 10-01-2011 02:50 AM

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.

Dirtbag59 10-01-2011 03:32 AM

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.

mooby 10-01-2011 07:25 AM

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.

Chico23231 10-01-2011 07:28 AM

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.

mooby 10-01-2011 07:33 AM

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.

Chico23231 10-01-2011 07:54 AM

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

Mattyk 10-01-2011 09:36 AM

Re: Banks preparing to charge for debit card usage
 
The little man always suffers.

Alvin Walton 10-01-2011 09:42 AM

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.

Chico23231 10-01-2011 10:48 AM

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.

Mattyk 10-01-2011 11:15 AM

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.

saden1 10-01-2011 02:35 PM

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.

DynamiteRave 10-01-2011 07:06 PM

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

JPPT1974 10-01-2011 08:45 PM

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.

Dirtbag59 10-01-2011 10:22 PM

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]

Beemnseven 10-02-2011 09:37 AM

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.


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