Debit card wars......

Discussion in 'Economy' started by p kirkes, Mar 11, 2011.

  1. p kirkes
    Offline

    p kirkes VIP Member

    Joined:
    Feb 26, 2006
    Messages:
    265
    Thanks Received:
    42
    Trophy Points:
    66
    Location:
    NW Louisiana
    Ratings:
    +53
    The big news for me today was the probable cap on debit card purchases, $50.00 to $100.00, the imposition of new monthly debit card fees, $3.00, the loss of free checking with an imposition of checking account monthly fee of $15.00.

    A new law enacted last year, lowered the debit card transaction fee from 44 cents to 12 cents per transaction. The law left the implementation to the Federal Reserve Board.

    This transaction fee is a 16 Billion dollar shift in money from merchants to banks, so faced with a substantial loss in revenue the banks are looking for ways to make it up. Some of the ways are stated above.

    The lobbying is intense and the stakes are high it's Merchants Vs Banks.

    How will this affect us? Cost of making purchases, not the purchase, will be more expensive. This may drive people to use cash, checks, ATM, and credit cards more.

    Personally, I use my debit card for everything except paying monthly bills and out of town hotels.

    I reviewed my debit card purchases for March (thus far) and find I used it 18 times. Two were for more than $50.00. I could have paid those by check.

    I don't want to use cash as it has a bad habit of slipping through your fingers. Using the ATM for $20 - $60 a trip is inconvenient and leaves you extra cash that you didn't intend to spend, but will. Burdening my credit card statement with small purchases is also cumbersome. So it looks like the $3.00 fee will be better. Although I don't like it, at my present rate of usage that would be about .08 cents per swipe, the price of convenience I suppose.

    The loss of free checking really irks me since I only make 10 checks per month, thats a $1.50 cost for each check.

    What to do......consolidate, use one bank, one checking account, one debit card.

    Regards,
     
    Last edited: Mar 11, 2011
  2. Anachronism
    Offline

    Anachronism BANNED

    Joined:
    Jan 30, 2011
    Messages:
    2,655
    Thanks Received:
    231
    Trophy Points:
    0
    Location:
    New England
    Ratings:
    +231
    Interesting. The two bank cards I've had with debit capability, I've had the banks block that feature. I try to go out of my way to pay for as much as possible in CASH. If I don't have the cash, I don't make the purchase. I learned that after getting into some trouble with credit cards earlier in my life. Hell, I rarely have a credit card on me unless I expect to make a major purchase that day.

    It does sound like this could have a significant affect on things for those of you who do use these cards regularly.
     
  3. waltky
    Offline

    waltky Wise ol' monkey Supporting Member

    Joined:
    Feb 6, 2011
    Messages:
    20,804
    Thanks Received:
    1,789
    Trophy Points:
    215
    Location:
    Okolona, KY
    Ratings:
    +3,865
    Banks resisting cutting debit card fees...
    :eek:
    Lawmakers try to stall law on cutting debit card fees
    31 Mar.`11 WASHINGTON — Amid intense lobbying by the banking industry, a bipartisan group of lawmakers is pushing to delay a law to dramatically reduce the fees banks collect from retailers every time a debit card is swiped.
     

Share This Page