$50 Debit Card Spending Cap is Coming

[Cashizslick]

Debit card spending limit? Banks consider a $50 cap - Mar. 10, 2011

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. 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.

That's a big enough cut to cost Chase (JPM, Fortune 500) more than $1 billion a year. And Chase may not be alone. Other major issuers are also projecting huge losses from the interchange fee cap.

The article then goes on to say that the banks are evil and greedy, totally missing the fact that, up until now, we have been able to use these cards for free.... now because of government regulation we will have to suffer.

Thank you Obama.

 

[E_SolSi]

so what is this, a .gov scam to get everyone back to the habit of charging their life away with money they dont have on regular credit cards instead???

 

[Drake]

so what is this, a .gov scam to get everyone back to the habit of charging their life away with money they dont have on regular credit cards instead???

Probably.

 

[95b16coupe]

I think the article is specifically regarding chase bank. I have an account there currently. Every day I lean more towards a different bank. And I'm not talking about a local credit union. I'm looking global like hsbc or Td Canada trust.

 

[Cashizslick]

And Chase may not be alone. Other major issuers are also projecting huge losses from the interchange fee cap.

Its probably an issue with every bank that charges an interchange fee... which is probably every bank that issues a debit card.

 

[95b16coupe]

The irony behind this is that it was created to protect consumers and save us money.

Many people don't have credit cards or limits high enough for big purchases.

I don't has a credit card with a limit high enough to buy a tv. So not only do I not get my shoes, clothes, groceries, or just about anything, but the companies lose all these sales.

Once again, stupid people and poor people who can't manage credit have fucked over the rest of us.

 

[TurboMirage]

glad i pay cash... if i had a debit or check card i wouldnt have anything in my savings. granted, its a PITA to go to the bank when i need money but atleast i only take out what i need and dont spend outside my means.

 

[Airjockie]

it's the same with gas now.....buy with cash, get gas 10 cents cheaper, buy with credit or debit...10 cents or more a gallon.....

if you commute like me...70 miles a day, 90 miles a day if I fish....it adds up.

 

[Airjockie]

in the end...we are all fucked.....


at least I practice catch and release on some species...

 

[Briansol]

Cash is king.

I only use my debit card at the grocery store. that's it.

 

[Jeef]

The article then goes on to say that the banks are evil and greedy, totally missing the fact that, up until now, we have been able to use these cards for free.... now because of government regulation we will have to suffer.

Thank you Obama.

Well we haven't exactly been using them for free. You don't think that retailers consider charges part of overhead and add it into the price of things. The guy paying cash is paying for the debit card users fees.

 

[Cashizslick]

Not every company does that.

 

[Briansol]

They have to. It is illegal to have a cash vs credit price for almost everything. They recently changed legislation for gas prices around here, but otherwise, to the best of my knoweldge, this is against the CC companies TOS. anyone offering a 'cash' price (at least on the books) is at risk of losing their merchant account.

 

[GSRCRXsi]

Couldn't you just charge your debit card as credit? I NEVER charge as debit. They aren't getting my pin. Not sure if the fees thing is still present in that scenario. I hate carrying cash. I always end up with change and shit that I'll never use and it goes wasted. Debit card (as credit) pays everything for me. I've never had a problem.

 

[Jeef]

you can. Sometimes its cheaper for the retailer to take the card as credit and sometimes its cheaper debit. My Jeweler prefers me to use a debit since he gets charged less. The place where we get my dogs food its cheaper for them if the bill is under $20 to do credit over $20 debit. At big retailers I don't ask but these places I know the owners and would rather have the little extra money go to them than the bank.

 

[UNDR8D]

so what is this, a .gov scam to get everyone back to the habit of charging their life away with money they dont have on regular credit cards instead???

Nope its the fucking paper check lobby come back for its share

 

[UNDR8D]

Couldn't you just charge your debit card as credit? .

From the article:

"And the cap would apply even if you run your debit card as credit."

Guess not

 

[UNDR8D]

So after reading it it sounds like ultimately, the consumer will end up paying the difference backin a multitude of painful and inconvenient ways

This all sounds like the legislative agenda of a 7 year old. "I don't like it. Make it go away!" Boofuckinhoo

 

[Briansol]

Don't blame me, i told you not to vote for him....

 

[95b16coupe]

here is another interesting point.

if everybody reverts to paying cash for everything, we will be less inclined to keep cash in the bank. this will have several back end effects. if you are familiar with economics, you will be able to follow.

1) banks will have less cash. this will effect the lendability of assets, therefore causing loan interest rates to rise. the trickle down will be less loans offered due to lack of federal funds backing.

2) rates on cards will go up due to the fact that the bank is losing revenue.

i could go on about this forever. it's just fucking retarded. i'm buying gold bars from a vending machine in dubai.