Debit card purchases to be capped at $50?

Ghost

Ghost

New member
Dec 27, 2009
70
6
0
Debit card spending limit? Banks consider a $50 cap - Mar. 10, 2011

NEW YORK (CNNMoney) -- Declined! Your debit card may soon be denied for purchases greater than $100 -- or even as little as $50.


JPMorgan Chase, one of the nation's largest banks, is considering capping debit card transactions at either $50 or $100, according to a source with knowledge of the proposal.


Joe Price, president of consumer banking for Bank of America (BAC, Fortune 500), said in an e-mailed statement that the lower fee wouldn't fairly compensate the bank for the infrastructure and services it provides to retailers.
And consumers would end up feeling the pain when Bank of America is forced to recoup costs "by increasing the cost of their everyday debit card transactions, limiting their payment choices, and impacting industry innovation," according to the email.
Click to expand...

The real "ballers" get their monies one way or another.

Accept_It.jpg
 


Saw that today. Once again, regulations always increase costs. Here's how it works (not you, Ghost, but anyone who cares)...

The setup:

Right now, every time you swipe your debit card, your bank charges the retailer an average fee of 44 cents, which it shares with its partners. Those little fees, however, add up to about $16 billion per year, according to 2009 data from the Federal Reserve.

But as part of the Wall Street reform legislation that was passed last year, these fees are being slashed. The Fed is currently proposing rules that would go into effect in July and would cap interchange fees at 12 cents.
Click to expand...
If you're a bank, you don't like this. You gotta make money. So, lower the limit, and make consumers charge more often. Retailers will get nickel-and-dimed, but will pass that on to consumers through higher prices, less service, etc.

And as a kicker:

Aside from mulling over a limit on transaction amounts, Chase is already testing $3 monthly fees on debit cards and $15 fees on checking accounts in certain states. Additionally, the bank announced in November that it has stopped issuing debit rewards cards.
Click to expand...
Way to go, Washington. Thank you for passing reform that helps consumers.*



* this is sarcasm.
 
JakeStratham said:
Saw that today. Once again, regulations always increase costs. Here's how it works (not you, Ghost, but anyone who cares)...

The setup:

If you're a bank, you don't like this. You gotta make money. So, lower the limit, and make consumers charge more often. Retailers will get nickel-and-dimed, but will pass that on to consumers through higher prices, less service, etc.

And as a kicker:

Way to go, Washington. Thank you for passing reform that helps consumers.*



* this is sarcasm.
Click to expand...

Actually, this is what happens when the banks conspire with each other in order to keep their absurd profits.
 
Ghost said:
Actually, this is what happens when the banks conspire with each other in order to keep their absurd profits.
Click to expand...

Yeah man! So clearly the alternative is to hand over more control to the government over the banks because they operate so much better, RIGHT?? RIGHT???
 
I agree with Ghost; no single bank could even attempt such a thing in a small test group without every last one of their customers jumping ship... For such a thing to take place, it's ALL OR None... Meaning that lawmakers knew this would be a hard thing to conspire on... Were betting on it to be too hard.

This is likely just a threat that will go away fast or never materialize at all. -If it does materialize, then it's irrefutable evidence that banks are conspiring together against the governement and that could be seen as wrongdoing.
 
They get higher fees on credit card transactions.

However, it does make me think that if they cap debit cards to $50 transactions that students etc are going to be fucked. If they can't get a credit card and can only use their debit card.
 
I wonder how this is going to affect re-billing? Most of my bills are paid online with an automatic debit card payment.

I guess they'll have to re-bill a checking account # instead.
 
Right now, every time you swipe your debit card, your bank charges the retailer an average fee of 44 cents, which it shares with its partners. Those little fees, however, add up to about $16 billion per year, according to 2009 data from the Federal Reserve.
Click to expand...

An average of 44 cents.. Holy shit what a rip off. I pay 6 cents at my coffee shop up here in Canada.

Wow the banks like to rip you off.
 
Who actually charges a card as debit anyways?

Most charge as credit.. If you charge as debit they need your pin to bill it, like an atm.

You guys understand their are different networks right? Its the way its charged not the card
 
Interesting timing, just watched Inside Job.

Pretty sure nothing coming down from Wall Street or DC is in anybody outside of the inner circle's best interests.
 
You must log in or register to reply here.
Top Bottom