Debit Card Changes on the Horizon?

[KristinU]

naw, I think it will happen but what I think they will do is offer you some type of "replacement" vehicle for a monthly fee of course. They'll say, "look you can still use your old style debit card for free but your transaction amount will be limited to 100 bucks, but for a 5 dollar monthly fee will give you a debit card plus that you can use anywhere for any amount". of course we consumers will suck it up like candy, we'll say "oh 5 bucks is worth the convenience and they will rake in the dough.



That's really all they are.

Ding, ding, ding! I think you nailed it on the head. There will even be some sort of "cash back" or perk or something and everyone will be flocking to them. It will be like the old ATM card transition to Debit Card. Remember when ATM cards first came out and all they did was allow you to go to the ATM machine at your bank. It was later that the whole debit direct from your account at the point of puchase came around.

 

[njmom47]

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

Gotta love bein a Jersey Girl!

 

[Dismom55]

I will have to keep an eye on this, I use to be a check only person, carry no cash, then well everything changed to debit card being used instead of check as they would run your check and hand it back, so why not save the paper. Now they are changing the rules again.

 

[Shock13]

IMHO articles like these are scare tactics. Banks will already be losing money by being unable to charge the larger interchange fee, why would they dip into their profits even more by having fewer transactions? It makes no sense from a business standpoint. However it does make sense for banks to fight new regulations which force them to use fair business practices by releasing "news articles" to try to scare consumers into thinking these regulations are bad for them, not just the banks.

I talked to my sister about this and she said that at least where she works (Chase) they are not implementing any kind of cap on debit card purchases. They even had a staff meeting where the branch manager mentioned that article and the possibility of customers calling and coming in. She said they had an influx of calls about it and she was busy all day trying to assure customers that it wasn't going to happen.
She also reminded me that many of the added fees and regulations are being instilled by the federal government not by the bank itself.

 

[C.Ann]

Doesn't make an awful lot of sense to me.. With all of the various changes - including many banks eliminating free checking - they're just going to drive people away, not make money off of them..

So far none of the banks I use charge for checking; I have several debit cards - one that has a super good rewards program - and I'm a firm believer in having cash on hand at all times as well..

It would stink to lose the rewards - especially with the economy the way it is - and the free checking for the occasional checks that I do write - but it wouldn't be hard for me to adjust to living by cash only.. I lived that way for many, many years - by choice - and only became involved with debit cards when I started to travel long distances and shop online.. But - before I will shell out more fees for anything, I will go back to a "cash only" basis..

The banks - just like the CC companies - may find that they are "shooting themselves in the foot".. People are tired of being nickeled and dimed to death.. People who have never lived by cash alone may find it difficult to adjust, but for those of us (older generation) who have already lived that way for years and years, we will find the transition quite easy and simply walk away from the banks..

 

[Dismom55]

If they charge me to spend my money in a safe way I totally agree, I simply will go back to taking out the cash I need for the week carry only what I need for the day like I used to back in the 70's. I will not use up my budget in bank fees. So far my bank is not changing the way they do business.

I keep little actual cash on hand, but I do have several hundred in travelers checks, good as cash but safer since I feel if stolen can be replaced. Granted not earning interest, but safe all the same. I also take them with on Disney trips as my emergency money.

Banks may be going to far this time.

 

[weHEARTmickey]

This doesn't make sense?!?!?! We are small business owners and WE are the ones who have to pay this interchange fee they mention in the article. Everytime a consumer uses a debit card or a rewards credit card OUR BUSINESS is charged the fees. I don't understand why the banks are crying???

On a personal note: we are Dave Ramsey fanatics & pay cash for everything anyway (except some bills, which we write checks for.)

 

[cm8]

Doesn't make an awful lot of sense to me.. With all of the various changes - including many banks eliminating free checking - they're just going to drive people away, not make money off of them..

So far none of the banks I use charge for checking; I have several debit cards - one that has a super good rewards program - and I'm a firm believer in having cash on hand at all times as well..

It would stink to lose the rewards - especially with the economy the way it is - and the free checking for the occasional checks that I do write - but it wouldn't be hard for me to adjust to living by cash only.. I lived that way for many, many years - by choice - and only became involved with debit cards when I started to travel long distances and shop online.. But - before I will shell out more fees for anything, I will go back to a "cash only" basis..

The banks - just like the CC companies - may find that they are "shooting themselves in the foot".. People are tired of being nickeled and dimed to death.. People who have never lived by cash alone may find it difficult to adjust, but for those of us (older generation) who have already lived that way for years and years, we will find the transition quite easy and simply walk away from the banks..

You hit the nail of the head with this one

 

[Colleen27]

This doesn't make sense?!?!?! We are small business owners and WE are the ones who have to pay this interchange fee they mention in the article. Everytime a consumer uses a debit card or a rewards credit card OUR BUSINESS is charged the fees. I don't understand why the banks are crying???

Because the amount they can charge you for each transaction will be capped significantly below what they currently charge. You'll pay less and they'll collect less.

 

[JB2K]

She also reminded me that many of the added fees and regulations are being instilled by the federal government not by the bank itself.

You are absolutely correct -- I don't blame the banks, as they are not a social agency -- they are in the business to earn some sort of profit for their shareholders.

The government, on the other hand, might be getting a little out hand with this one (and due to the TOS for this board, that's all I'm really going to say on the subject without naming names).

 

[JB2K]

This doesn't make sense?!?!?! We are small business owners and WE are the ones who have to pay this interchange fee they mention in the article. Everytime a consumer uses a debit card or a rewards credit card OUR BUSINESS is charged the fees. I don't understand why the banks are crying???

You, the small business owner, pays the 3-6% interchange fee and the bank makes the profit - that's why the nation's mega-banks are up in arms over this.

For those of you who don't know, the fees are usually broken-down like this:

• If the transaction is processed through the MasterCard/Visa networks, the business pays the bank a 3% fee
• If the tranaction is processed through the American Express/Discover networks, the fee is higher (usually 5-6%)
• If the transaction is completed by using a PIN, it bypasses MC/Visa (even though their brand may be stamped on the front of the card) and goes through one of the nation's many debit networks (such as Star, NYCE, or Pulse) and the fee is much lower to the merchant (usually 1%)

Since many of the nation's big retailers already accept PIN-based debit cards, I envision a throwback to the late 80's/early 90's, before MC/Visa checkcards came into play. While this may work for many, most small businesses do not accept PIN cards -- plus, most internet merchants are not equipped for PIN-based debit usage.

On a personal note: we are Dave Ramsey fanatics & pay cash for everything anyway (except some bills, which we write checks for.)

To each their own -- personally, I don't want to carry wads of cash in my wallet and possibly get accosted in the big-box store's parking lot.

 

[Trinity524]

dup

 

[Trinity524]

I talked to my sister about this and she said that at least where she works (Chase) they are not implementing any kind of cap on debit card purchases. They even had a staff meeting where the branch manager mentioned that article and the possibility of customers calling and coming in. She said they had an influx of calls about it and she was busy all day trying to assure customers that it wasn't going to happen.
She also reminded me that many of the added fees and regulations are being instilled by the federal government not by the bank itself.

Just FYI, as an employee of Chase myself, please let your sister know that what is shared in meetings are not for public knowledge and she could lose her job for stating any information that is not in a disclosure to the public. Things change every day in every company. All big banks will be making changes. BoA was the first to announce, but it will not be the last.

Here is BoA's announcement.

http://www.washingtonpost.com/wp-dyn/content/article/2011/01/05/AR2011010505358.html

 

[eliza61]

Doesn't make an awful lot of sense to me.. With all of the various changes - including many banks eliminating free checking - they're just going to drive people away, not make money off of them..

So far none of the banks I use charge for checking; I have several debit cards - one that has a super good rewards program - and I'm a firm believer in having cash on hand at all times as well..

It would stink to lose the rewards - especially with the economy the way it is - and the free checking for the occasional checks that I do write - but it wouldn't be hard for me to adjust to living by cash only.. I lived that way for many, many years - by choice - and only became involved with debit cards when I started to travel long distances and shop online.. But - before I will shell out more fees for anything, I will go back to a "cash only" basis..

The banks - just like the CC companies - may find that they are "shooting themselves in the foot".. People are tired of being nickeled and dimed to death.. People who have never lived by cash alone may find it difficult to adjust, but for those of us (older generation) who have already lived that way for years and years, we will find the transition quite easy and simply walk away from the banks..

Unfortunately we're are becoming a smaller and smaller majority. Look at some of the responses here (no, they are not wrong).
Many people now are about convenience. They don't want to get out the car and actually go to the inside a bank. Companies know this.

They also know most people won't get up in arms about little "fees". Unlikethe airlines that charge a min. of $20 bucks for every thing, the banks will come up with a small 5 bucks fee that we'll swallow.

Think about C Ann, they've been doing it for years. free checking... then it was free checking if you maintain X balance. all types of credit card fees. We've quietly accepted a whole host of fees. in the name of convenience and speed.

 

[C.Ann]

Unfortunately we're are becoming a smaller and smaller majority. Look at some of the responses here (no, they are not wrong).
Many people now are about convenience. They don't want to get out the car and actually go to the inside a bank. Companies know this.

They also know most people won't get up in arms about little "fees". Unlikethe airlines that charge a min. of $20 bucks for every thing, the banks will come up with a small 5 bucks fee that we'll swallow.

Think about C Ann, they've been doing it for years. free checking... then it was free checking if you maintain X balance. all types of credit card fees. We've quietly accepted a whole host of fees. in the name of convenience and speed.

True.. A very large segment of our society would rather spend whatever they have to - for convenience and speed - as opposed to drawing a line in the sand and saying, "No - that's not acceptable.." My parents were strictly "cash" people and I grew up under the mantra of, "Pay as you go - unless you're going for good.." LOL.. Another favorite saying of my dad's - that was constantly drilled into our heads - was, "If you don't save dimes, you'll never have dollars.." Often times it's those "little" things that actually add up to the bigger ones.. Most people would never just walk into the first appliance store they stumbled upon - and purchase the first fridge or stove they laid eyes on without doing a whole lot of shopping around and getting the best deal possible..

There usually is a thread here on the BB about "change jars" - for Disney trips - and that's a perfect example of how much people can save if they pay close attention to those "little fees"..

I'm gearing up to do battle with the cable company when I return to the lake in mid-April.. There are no "choices" up there - it's that one company or none - but I do have the choice of saying, "You know what? If you can't (or won't) give me a better rate on my Standard Service, then I'll be dropping down to the Basic Service.." Granted, I'll miss a couple of the channels - and definitely miss the Weather Channel - but when it comes to the costs associated with cable/internet service I have a definite figure in my mind and I'm firm on that.. That pretty much sums up how I feel about all these "little" fees on other things.. If I have a cheaper alternative (even if it means giving up a degree of convenience and speed), then that's what I'm going to do..

It certainly will be interesting to see how the population as a whole responds when and if all of these various proposals are put in place..

 

[Dismom55]

That brings to my mind the fact that many will walk past a penny laying in the parking lot, while I bend over and think, one more penny for Mickey, pick up up and know it will go in my change bottle. I will go into the bank as I do not relish the idea that the bank will charge me for the use of my money. If suddenly I am paying fees, trust me I will find a way around those fees as much as possilble. If that means all my pay goes into a savings acct and I no longer have a checking acct, well then that is what will happen. When I first got married I shopped with cash and a calculator, I did it once I can do it again! I have prided myself on being able to squeeze two pennies from one all my 38 yrs of married life, I can certainly continue if need be, the banks simply will not take more of what we have worked so hard for. Others may not mind, but I am not by myself of those who do mind.

 

[C.Ann]

That brings to my mind the fact that many will walk past a penny laying in the parking lot, while I bend over and think, one more penny for Mickey, pick up up and know it will go in my change bottle. I will go into the bank as I do not relish the idea that the bank will charge me for the use of my money. If suddenly I am paying fees, trust me I will find a way around those fees as much as possilble. If that means all my pay goes into a savings acct and I no longer have a checking acct, well then that is what will happen. When I first got married I shopped with cash and a calculator, I did it once I can do it again! I have prided myself on being able to squeeze two pennies from one all my 38 yrs of married life, I can certainly continue if need be, the banks simply will not take more of what we have worked so hard for. Others may not mind, but I am not by myself of those who do mind.

Glad to see that I'm not the only "crazy" person who will stoop down to pick up a penny if I see one lying on the ground - LOL..

I have actually seen people come out of a store and toss their pennies on the ground!!

Money is money - no matter how you look at it..

 

[ConnieB]

True.. A very large segment of our society would rather spend whatever they have to - for convenience and speed - as opposed to drawing a line in the sand and saying, "No - that's not acceptable.." My parents were strictly "cash" people and I grew up under the mantra of, "Pay as you go - unless you're going for good.." LOL.. Another favorite saying of my dad's - that was constantly drilled into our heads - was, "If you don't save dimes, you'll never have dollars.." Often times it's those "little" things that actually add up to the bigger ones.. Most people would never just walk into the first appliance store they stumbled upon - and purchase the first fridge or stove they laid eyes on without doing a whole lot of shopping around and getting the best deal possible..

There usually is a thread here on the BB about "change jars" - for Disney trips - and that's a perfect example of how much people can save if they pay close attention to those "little fees"..

I'm gearing up to do battle with the cable company when I return to the lake in mid-April.. There are no "choices" up there - it's that one company or none - but I do have the choice of saying, "You know what? If you can't (or won't) give me a better rate on my Standard Service, then I'll be dropping down to the Basic Service.." Granted, I'll miss a couple of the channels - and definitely miss the Weather Channel - but when it comes to the costs associated with cable/internet service I have a definite figure in my mind and I'm firm on that.. That pretty much sums up how I feel about all these "little" fees on other things.. If I have a cheaper alternative (even if it means giving up a degree of convenience and speed), then that's what I'm going to do..

It certainly will be interesting to see how the population as a whole responds when and if all of these various proposals are put in place..

As someone who hasn't had cable TV in coming up on 15 years.....remember that the Internet has a lot of what the Weather Channel is all about.

When we first got rid of cable it was because I'd just had twins so kinda had my hands too full for tv anyway.....hubby went TDY and during that time the cable company sent notice of a rate hike....I called and cancelled. Forgot to tell hubby when he got home and it was nearly two weeks before he even noticed that cable wasn't working. Asked me to call them in the morning and see what was going on as it had been out all day.....ummm, dear, forgot to say while you were away and incommunicado that I cancelled them, lol. We laughed ourselves silly that so much time had gone by and no one had even missed it. So we never signed up again. We get most of our movies from the library within a few weeks of release, so save a ton of money there too. Ok, so not everyone can go cold turkey without tv....I know that's how I would be if someone said just turn off your Internet to save money. Ummm, could I cut off my foot instead? LOL

Credit cards can be quite evil if you don't have the knowledge....or more likely the discipline to use them wisely. I charge EVERYTHING so that I can earn rewards. But I also pay the balance online every Saturday morning (hubby's paycheck is auto deposited Friday morning). So we have never carried a balance our entire marriage....including through a year of unemployment! So I reap the rewards but pay not a penny in annual fees or finance charges. I know a lot of people aim to throw out all their credit cards once they pay them off, but really if you can control yourself and not get into debt again....it's wise to keep at least one, with as high a credit line as they'll give you. Reason is two fold....first, your credit score is based on the percentage of your available credit vs. used credit. So we have a credit card with $20,000 (yes, twenty thousand) available credit, and every week I pay off the few hundred (or a couple thousand when it's bill week)...so we have an extremely high ratio. The second reason is more practical....in today's society you need the ability to pay by credit....renting cars, deposits for hotels, better prices on things bought online....and the big one to me...true emergency. Our car died on vacation once....and without that credit card we'd have been stranded a bit longer as we waited for the weekend to get over so we could get cash from a bank (it was more than an ATM will allow and they wouldn't take checks from an out of stater). Would have spoiled the vacation a lot more than it did if we'd been stuck in some nasty hotel walking distance from the place we were towed, instead of a few hours in a restaurant waiting for the repairs and getting back on the road. I also think of medical emergencies where I don't want my lack of our co-pay to be the difference between getting help and scrambling around trying to come up with cash. As I said above, we had a year of unemployment due to injury....thankfully we got worker's comp and social security to help make up enough to pay the mortgage, but we still had to eat and pay bills from our savings. It was VERY comforting to know that if the savings ran out we wouldn't be homeless for quite a while though we'd be going deep in debt on that credit card. Didn't have to touch it, thank heavens, but it made sleeping at night much easier knowing IF...then it was there.

 

[Becky2005]

Yeah, I'm that old too....but remember you could buy a whole week worth of groceries for less than you pay today to fill up your gas tank! And filling up that gas tank took less than fast food dinner for a family of four today!

Somewhat true but it was nothing for my mom to spend at least $200 every week for groceries...it STILL doesn't take me $200 to fill up the gas tank. Not yet anyway.

Of course, this was before 24 hour grocery stores and all 3 of us kids got woken up bright and early Saturday morning to go to the grocery store when it opened around 8 AM because you did NOT want to be in the afternoon lines.

Interesting to read another person mentioned about possibly getting rid of checks -- how would that work? How would you pay things like utility bills, mortgage (trust me our mortgage company does NOT take credit cards...I thought of that when I had the Disney Visa!), etc... You can't mail cash -- well you COULD but not a smart idea. I guess you could get a money order but I would think most companies would rather get a check than a money order.

If they stopped processing checks completely then I really WOULD be up a creek because I would have no idea how to pay a few bills that don't have on-line, don't accept credit cards and you have to mail in the bill...I have no idea how I would pay them.

 

[Becky2005]

Glad to see that I'm not the only "crazy" person who will stoop down to pick up a penny if I see one lying on the ground - LOL..

I have actually seen people come out of a store and toss their pennies on the ground!!

Money is money - no matter how you look at it..

Count me in as one!! I have not seen anyone throwing pennies on the ground though...I think I would stop and have my jaw drop.

One thing a board I was on tried once (or I tried) -- is same concept as saving change but see if you could save dollar bills. Just toss them in a drawer somewhere (because in my case -- if they were sitting in sight -- hmm...we have enough in there to order a pizza! ) and see how much you end up with at the end of the month. A lot of people don't think $1 is all that much either.

It really IS the small purchases that snag most people up...the Starbucks coffee every morning. The snack from the vending machine at work on break. All of that - or maybe that's just me but I try to be mindful of it.