If their cards will even be accepted. Because CUs and small banks aren’t subject to this regulation, their switching fee can be what they currently are; nearly twice the price fixed rate. That means a merchant has to pay 40 cents to swipe that CU card vs. 20 cents for BOFA. Will the merchant eat the bigger fee on the small bank card because he makes it up on the artificially government fixed one; we’ll see? When government forces someone to give a free lunch, the cost just shifts to someone else - ALWAYS. If everyone piles into small banks to avoid the debit card fee, they’ll have to change the regulation to cover them too. The system is not static.
I’ve posted the below on a couple of these “debit card fee” threads. I don’t guess once more will hurt:
IMHO, Congress wants us to change our method of paying for stuff. Why else would they pass regulations like this?
Fine. I’ll change. I’ll go to the ATM, withdraw a bunch of cash, go to the store and spend it. Everybody wins except the bank. The store wins because they won’t have to pay the debit card transaction fee. I win because I won’t have to pay the debit card monthly fee.
The bank will lose twice: First because my checking account balance won’t be as high (I’ll be carrying it in my pocket) and second because there won’t be a transaction fee from the store.
Screw Congress.
And if the bank decides to charge a flat monthly fee on my debit card? I’ll go to all cash and switch the debit card for an ATM-only card. And if the bank decides to charge a flat monthly fee on the ATM card? I’ll go back to writing checks. And if the bank decides to start charging for my checking account? There’s always the credit union. They appear to really want my business.
The bank will NOT win. I won’t let them.