Posted on 03/10/2011 1:08:35 PM PST by Whenifhow
.....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. Why? Because of a tricky thing called interchange fees. 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. ....
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," ..... 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.
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So with the Fed's proposed cap in place, banks argue they won't have the money to protect themselves against fraud. And, of course, the bigger the purchase the bigger the risk, so banks are considering limiting consumers' ability to pay by debit card.
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But a Bank of America spokesman declined to comment on whether the bank would cap debit card purchases at $50 or $100.
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If a cap like this does make its way into accounts across the board, consumers would be forced to write checks, withdraw cash from ATMs, or put their spending on credit cards. "The whole model on the debit card side is in flux because of Dodd-Frank," said Brian Riley, senior research director at financial services consulting firm TowerGroup.
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Bank of America, for example, announced a $59 annual fee last month for its riskiest customers -- making up about 5% of consumer credit card accounts.
(Excerpt) Read more at finance.yahoo.com ...
We’ve already run into trouble with the $100 limit. Try filling a 2009 Ford F150 in SoCal!
DING! You are our first winner and will now receive our new credit card with a low apr. for the first 12 months. F all banks and the US Gov.
Leave it to CA with their boutique fuels.
After Katrina President Bush eliminated the different rules and regs across the country so there would be enough fuel until the offshore drilling could resume.
You just know the dunce in the White House wouldn’t dream of alleviating the upward pricing pressure.
A lot of prepaid debit/credit cards are popping up all over. They are like your own mini-bank. Deposits from payroll can go directly into it, yet not to a bank.
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A reloadable VISA “gift card” would do the trick...
Cash works. Pay in person. Heck, pay a year’s worth in advance.
So now cash is king in more ways than one.
Maybe I’ll order some new checks and start mailing my bill payments again.
“Get ready people it’s gonna get bad.”
You’re right; this is a way to manage the mice in the maze. Fortunately (!) there are so many illegals here in NJ that cash is and always will be king - W2s aren’t even on the radar for these people who work for and shop with cash. Ask them their names - they have 5 apiece with proper ID!
Ever rented a car?
“Leftists are finally going to line up enough angry people with pitchforks and come after the banks”
People Take Over Bank of America Branch in DC
http://www.alternet.org/newsandviews/article/513365/people_take_over_bank_of_america_branch_in_dc/
National Peoples Action Shuts Down Bank Of America Branch
http://www.youtube.com/watch?v=2xVGkH4HiYo&feature=player_embedded
Banks would be stupid to do this. It costs more to process a paper check on a per item basis than to process and electronic transfer.
Now’s a good time to find a credit union, especially if they refund your ATM fees.
But... but... but... that’s racist! /s
Yes, and I used a credit card, not a debit card. No problem. However, car rentals are one of the relatively few places where cash is spurned. Unless you have to travel frequently (i.e. business) cash is still accepted without question.
Probably not all that much. Big name banks like Morgan/Chase and Bank of America make their money from their corporate customers. They would just as soon see Ma & Pa Kettle and the rest of us poor folks take their piddly little accounts elsewhere. Credit Unions are a better bet for the peons, they are happy to do business with individuals and won't nickle and dime you to death with silly fees and charges.
Regards,
GtG
I switched to Credit Union and cannot get over the difference in just customer service! Fantastic! Have not seen that in years in Banking. Wonderful to have the attention and help they offer. Should have done this years ago!
“JPMorgan Chase, one of the nation’s largest banks, is considering capping debit card transactions at either $50 or $100”
Too bad no one “capped” how much money JP Morgan could bet on CDO/CDS deals.
They wouldn't have collapsed IMO....there were buy outs happening left and right just before this....GoldMan still going strong...and loving every bit of their take in the whole fiasco. I said then, this was the start of the biggest takeover by Government our nation would ever see....and I was right. They are simply manipultaing money and putting it where they can get their hands on it in order to merge with the one world currency/banking which will soon be a reality. They put just enough money into the public to make it look like they were helping when in fact it's all been shuffled from one place to another....what use to be called "money laundering".
“A couple of years ago the gas pumps were calibrated to not charge more than $50. Now it will have to be $100 to fill the tank.”
You must have a Smart Car. My cars will need at least $200 to fill up, once we get our $9.00 gas next month (after Saudi falls).
It looks like most of the FReepers here are being DUPED again. If you read the article it is more than OBVIOUS that the reason for capping the debit cards is the limits on the transaction fees that can be charged. If you don’t like those limits BLAME CONGRESS, don’t blame the banks.
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