Debit Card Changes on the Horizon?

It's not a problem at all for me. I've never used my debit card for purchases. Cash for small to medium and credit cards for medium to large. I don't like giving everyone access to my checking account.

I don't understand why it's so hard to carry a bit of cash.
 
It's looking like there are some big changes coming for debit card users (which, IMO, could push many of us back into a "cash only" society).

And for those of you dealing with small banks/credit unions, they may not be exempt from what''s going-on (and probably will feel a bigger brunt of this proposed legislation, more than the mega-banks).

Chase, a mega-bank in its' own right, has already fired the first salvo, by imposing fees and discontinuing the Disney debit card.

Thoughts?

This is all over banks charging each other fees. Personally I hope we do return to a more cash society. I am sick of these large banks charging me to use my money.

So this is happening because chase is no longer allowed to charge merchants outrageous fees for accepting a debit card. They claim they are losing millions which I find as total bull because of all the other outrageous fees they charge on your debit card. Some banks here have a monthly usage fee for your debit card already. Your checking account has fees, use some one else atm, you get a huge fee, fee here, fee there.

Sorry but I'm am sick of these greedy, mega large banks. Chase wants to impose a limit. No worries, I'll adjust. Like Bill I survived using cash, in fact I survived during the good old days when you didn't have atms and you actually had to budget your money from friday to monday.
 
This is all over banks charging each other fees. Personally I hope we do return to a more cash society. I am sick of these large banks charging me to use my money.

So this is happening because chase is no longer allowed to charge merchants outrageous fees for accepting a debit card. They claim they are losing millions which I find as total bull because of all the other outrageous fees they charge on your debit card. Some banks here have a monthly usage fee for your debit card already. Your checking account has fees, use some one else atm, you get a huge fee, fee here, fee there.

Sorry but I'm am sick of these greedy, mega large banks. Chase wants to impose a limit. No worries, I'll adjust. Like Bill I survived using cash, in fact I survived during the good old days when you didn't have atms and you actually had to budget your money from friday to monday.


It's a darn shame too! And I don't mind using cash either:goodvibes
 
The article also talks about charging for checking accounts! If that happens I will go back to my credit union in CA even though it is out of state!

STUPID people! I am in no mood to deal with people charging for CASH at hand.....why don't they tack on fees for credit cards instead.....for people who spend more than they earn or have.....

Rant over....I am in a foul mood tonight so just ignore me if you wish....this just pushes my buttons!

Dawn
 


The article also talks about charging for checking accounts! If that happens I will go back to my credit union in CA even though it is out of state!

STUPID people! I am in no mood to deal with people charging for CASH at hand.....why don't they tack on fees for credit cards instead.....for people who spend more than they earn or have.....

Rant over....I am in a foul mood tonight so just ignore me if you wish....this just pushes my buttons!

Dawn

But that would hardly be fair to the people who use their credit cards responsibly. There's no way for the tack on charge originated at the p.o.s. to know how you use your credit. It is just a flat rate they charge your bank/cc.

As much as an inconvenience this new debit card change might be, it really is not the end of the world. As some pp stated, there was a time when you just paid with cash, credit or check. It's an adjustment not a crisis.

I also imagine there will be banks that will, as a way to get more customers, will be waving this limit...just like banks use free checking to get customers. Unless I read the article wrong? It is the bank's decision right, not a global rule?
 
The article also talks about charging for checking accounts! If that happens I will go back to my credit union in CA even though it is out of state!

STUPID people! I am in no mood to deal with people charging for CASH at hand.....why don't they tack on fees for credit cards instead.....for people who spend more than they earn or have.....

Rant over....I am in a foul mood tonight so just ignore me if you wish....this just pushes my buttons!

I'm with you... but the fact is those people spending more than they have are a constant source of revenue. Overlimit fees, interest, finance charges, cash advance charges, higher default rates, annual fees, etc. Those of us living within our means, paying with money we already have or paying off credit cards as soon as the bill comes in, are bad for the banks' bottom lines. And if they can't "get us" by charging high fees to retailers (that the stores of course pass on to consumers), they're going to look for another way.
 
I'm thinking banks may lose money this way. If we turn into a cash society, or pretty close to it, then people will cash their checks and keep their money under their mattress.
 


As much as an inconvenience this new debit card change might be, it really is not the end of the world. As some pp stated, there was a time when you just paid with cash, credit or check. It's an adjustment not a crisis.

I also imagine there will be banks that will, as a way to get more customers, will be waving this limit...just like banks use free checking to get customers. Unless I read the article wrong? It is the bank's decision right, not a global rule?

The problem I have with it is that for those of us who have chosen to live without credit, this now pushes us into having to get back into that system to adapt (which of course will be good for the bank, bad for us). Cash or checks aren't practical options for so many things - you can't buy airfare, or book a travel package, or shop online with cash or a check. Strict caps on debit card transactions would mean that those who choose not to have credit and those who cannot qualify for a charge card are unable to do certain fairly basic things.

I do hope you're right about certain banks using the lack of such limits as a promotional tool, but I'm not entirely clear on the whole thing. It sounds to me like this is a POS issue that would be subject to the retailer's credit card terminal provider's rules, not to individual account rules. :confused3

ETA: As far as the issue of fairness, there is nothing unfair about a retailer passing on the costs of accepting credit to the customers who benefit from that system. You are the one getting the protections of plastic, both in terms of convenience and fraud protections, which these fees are intended to recoup. It is far more fair (but prohibited by merchant agreements) to pass those costs on only to the customers benefiting from the system rather than passing them on to everyone, including those who do not.
 
Would this be only for debit purchases? In order to get rewards on my Chase debit card, I have to use it as a credit transaction.

My sister who works for Chase said that come July, they are discontinuing the ultimate rewards program for debit cards whether you use it for a debit or credit transaction.
 
That would stink but alas...it's not surprising. I was thinking "couldn't you just write a check?"

Although I wonder how that would work since they do the checks electronically anyway -- do they have to pay a fee for that too? If so, then I'm going to assume you can't even write a check for more than the daily limit when at a store.

Plus it sounds like they are going to try to jack up checking account fees more anyway. It's always something.

I have been trying to go to more cash route anyway because I hate all the tracking stuff everyone does -- if you pay with actual cash and don't use any sort of rewards/club card, don't give your phone number, etc... you can't be tracked. OK...kind of "big brotherish" but I just like the anonymous way of it.

This morning they were also reporting that along with the new debit card rules banks are getting rid of free checking and going to charge a monthly fee for it. So on top of the cost of a check you are going to be paying a monthly fee as well. So while you could just use a check you are going to pay more for it as well. If they do this I can definately see more people going back to cash and possibly even money orders as well as paying more bills online when possible.
 
This would also mean that you couldnt even fill up your gas tank in one day? With gas prices and driving a mini van it usually costs me more than $50. to fill up my tank. Then I would have to get cash and go into the station to pre pay. I guess that is lazy but being so use to just being able to pull up insert my debit card fill up and be on my way.

Just FYI, it really isn't very wise to use a debit card to buy gasoline at the pump.

Gas pumps are really common hosts for skimming devices that lift the account information (it has happened to me twice, but with credit cards, thank God). You're really up the creek if a thief gets hold of access info for your checking account. They can clean you out in nothing flat and there is no recourse with a debit card the way that there is with a credit card.

I use a CC that I have specifically for gasoline, and the account is autopaid from my checking account each month. Still convenient, and I still don't pay interest, but a lot less risky than using a debit card at a gas pump.
 
Right, but I have Bank of America, which honestly, seems to try to charge when they can. I haven't had any charges, but I fear they will eventually have them.

Buy WHY tack on charges to use your debit? That is the same fairness in my opinion.....not fair any way you look at it.

I can't imagine having to carry cash into the gas station and wait in line to pay and wait in line to get any change.....all with 3 kids in tow.....

Anyway, we will see what happens....I am trying not to get too upset about it. So far it isn't working! :laughing:

Dawn

But that would hardly be fair to the people who use their credit cards responsibly. There's no way for the tack on charge originated at the p.o.s. to know how you use your credit. It is just a flat rate they charge your bank/cc.

As much as an inconvenience this new debit card change might be, it really is not the end of the world. As some pp stated, there was a time when you just paid with cash, credit or check. It's an adjustment not a crisis.

I also imagine there will be banks that will, as a way to get more customers, will be waving this limit...just like banks use free checking to get customers. Unless I read the article wrong? It is the bank's decision right, not a global rule?
 
This is such a bad idea! We choose not to have credit cards because we don't ever want to get ourselves in trouble. It is great to have the debit card with the visa logo so that I can use it when a credit card is needed. I will NOT get a credit card because I want to pay cash for everything. What will we do if we want to book a trip or rent a car?
 
This is such a bad idea! We choose not to have credit cards because we don't ever want to get ourselves in trouble. It is great to have the debit card with the visa logo so that I can use it when a credit card is needed. I will NOT get a credit card because I want to pay cash for everything. What will we do if we want to book a trip or rent a car?

but unfortunately like Colleen mentioned, banks don't make money off of you.
 
Yeah no I don't think so - I would likely charge something rather than have hundreds of dollars on me at a time to handle my larger purchaes.

As for writing checks, sure can do that, but most places don't really like checks and all that use of paper is silly.

Liz

In the original article, it talked about this hitting those who can least afford it very hard, those who don't or can't get credit. If you don't have the option of using plastic of any form and have to use cash, I think it would make people more fiscally responsible.
 
Since we live in the 21st century, I disagree and present these arguments:

  • Cash is non-traceable, and can be easily-stolen.
  • How would you pay for something purchased over the internet? Not every merchant is into PayPal.
  • How could you guarantee a reservation (especially when there may be little time to send a check)?
What's next? Will the banks have so much pressure heaped upon them that some people will be forced into using check cashing storefronts to conduct their basic financial business (or will Walmart further see a business opportunity out of all this and become the #1 place for financial services?).

Sounds a tad extreme, but more often than not, the nation's leadership has "good intentions" that go awry...

This completely depends on how much individuals in society have already bought into allowing others - banks, government, credit card companies - to make financial decisions for them. Buy local, deal with local banks, live locally. Is it the cheapest or most convenient, no, but I believe it's better for our neighborhoods, our environment, and our government.
 
Right, but I have Bank of America, which honestly, seems to try to charge when they can. I haven't had any charges, but I fear they will eventually have them.

Buy WHY tack on charges to use your debit? That is the same fairness in my opinion.....not fair any way you look at it.

I can't imagine having to carry cash into the gas station and wait in line to pay and wait in line to get any change.....all with 3 kids in tow.....

Anyway, we will see what happens....I am trying not to get too upset about it. So far it isn't working! :laughing:

Dawn

Ahhh, never even thought of that, I'm from Jersey :laughing: We aren't allowed to pump our own gas and pay out the car window! That would be a pain.

Do you have any Capital One banks around you? They have free checking and (as of now), no ATM fees. They reimburse any other bank ATM fees up to I think $20/month.
 
The DW and I have been discussing the potential impact of this to us DIS'ers. Things like new tires, emergency car repairs, Disney tickets, gas and hotels if we're driving to WDW, airfare if flying...

Imagine all of those diners at Le Cellier and other restaurants who will be expecting to pay for their family's dinner on their debit card because the cash is in their account. Heck, you can barely buy a medium Mickey plush under a $50 cap.

Yes, it will make people a little more financially responsible, but it will really cause us to rethink how we handle expenses while on a trip.
 
You're really up the creek if a thief gets hold of access info for your checking account. They can clean you out in nothing flat and there is no recourse with a debit card the way that there is with a credit card.


This is not correct at all. When you run your debit card for any transaction there are two ways to run it, debit using your pin and credit where you sign.

When you select debit and use you pin your transaction is run through the banking systems ATM network. When you select credit its run through the credit network ie Visa, Master card, …

When run as credit you have the EXACT same protections as any credit card. Most all bank will also provide a $0 liability protections for fraudulent charges on their debit / ATM network. As long as you promptly report the fraudulent charged your bank should credit your account back.


As for the rest of this issue, I don’t see banks limiting the debit card to $50 or $100, people will drop it like a rock and yes go back to cash, checks or credit.

It costs the banks more money to process checks vs. debit transactions.

I can see them charging more fees for things, like and end of free checking accounts and what not… Again I will leave my bank for CU and or go to cash.

I remember when no one write a check for small things, gas groceries, people paid with cash. The world didn’t come to an end, people weren’t robbed at gun point every time they left the house…
 

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