Debit Card fees spreading across the country!
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Originally Posted By: Anies
I'm not sure why it would be considered free money if your paying it in full every month.
Sorry, I was referring to the reward money or cash back.
I'm not sure why it would be considered free money if your paying it in full every month.
Sorry, I was referring to the reward money or cash back.
Originally Posted By: Anies
I'm not sure why it would be considered free money if your paying it in full every month. If your able to pay the card off every month, granted for credit rating but not much else. its still borrowing and paying(in the truest sense).
You borrow someone else's money for free. It is against the concept of time value of money.
I'm not sure why it would be considered free money if your paying it in full every month. If your able to pay the card off every month, granted for credit rating but not much else. its still borrowing and paying(in the truest sense).
You borrow someone else's money for free. It is against the concept of time value of money.
That's unfortunate. Up here we have banks that have zero fees for credit cards (all types of transactions except interest of course), debit cards (all transaction types), high interest accounts and free checks and the list goes on.
Indeed, it would make me sad to have pay $ to use a bank.
Indeed, it would make me sad to have pay $ to use a bank.
I blame congress for trying to help IDIOTS who run into trouble with their banks, and racking up fees because they overdraw their account. I've had a checking account and have paid zero in overdraft fees. I hate how they say that stupid people are "victims". Keep enough money in the bank, or don't use the card.
I have BOA checking, I honestly like them. Their service is worth 5 bucks a month to me. I write all my bills with their online bill pay and pay zero dollars for stamps and envelopes.
I would consider using one of the online checking accounts with the free ATM withdrawals everywhere, but sometimes I need to deposit cash, and you can't with online banking.
I have BOA checking, I honestly like them. Their service is worth 5 bucks a month to me. I write all my bills with their online bill pay and pay zero dollars for stamps and envelopes.
I would consider using one of the online checking accounts with the free ATM withdrawals everywhere, but sometimes I need to deposit cash, and you can't with online banking.
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Originally Posted By: PandaBear
Originally Posted By: Anies
I'm not sure why it would be considered free money if your paying it in full every month.
Sorry, I was referring to the reward money or cash back.
This. I mentioned twice that Chase pays me hundreds more than I pay them to use this card. The fact that I'm paying it off every two weeks makes the high interest rate a moot point, too.
Originally Posted By: Vikas
Did you guys read the heading? It says fees are spreading. If indeed the trend continues, then we all will be shafted.
I did, and mentioned that Chase's measly "maintenance" fee still doesn't touch the rewards they pay out. If you're not making more from the bank than they take from you in fees, then it's time to change banks or start using your credit card (cash, if that's your prerogative.)
Originally Posted By: Anies
I'm not sure why it would be considered free money if your paying it in full every month.
Sorry, I was referring to the reward money or cash back.
This. I mentioned twice that Chase pays me hundreds more than I pay them to use this card. The fact that I'm paying it off every two weeks makes the high interest rate a moot point, too.
Originally Posted By: Vikas
Did you guys read the heading? It says fees are spreading. If indeed the trend continues, then we all will be shafted.
I did, and mentioned that Chase's measly "maintenance" fee still doesn't touch the rewards they pay out. If you're not making more from the bank than they take from you in fees, then it's time to change banks or start using your credit card (cash, if that's your prerogative.)
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Well, looks like people are reacting! This from BBC
Quote:
Shares in Bank of America have fallen 2%, a day after it announced plans to charge debit card users $5 (£3.20) per month to pay for their purchases.
Bank of America, the largest US bank by deposits, said it would introduce the fee early in 2012.
The move comes ahead of a new rule that will limit how much lenders can bill retailers for customer debit card transactions.
The bank's debit card holders will still get free cash withdrawals.
The monthly charge will apply to users of Bank of America's basic bank accounts, and will be in addition to any service fees they already have to pay.
A number of smaller US banks, such as SunTrust, a regional lender based in Atlanta, have already introduced charges for debit card purchases.
So far only Citigroup has ruled out introducing the change.
'Changed economics'
Bank of America said the new fee would be rolled out on a state-by-state basis.
Its move comes as an amendment to the Dodd-Frank Wall Street Reform and Consumer Protection Act goes into effect from 1 October.
The amendment, brought by Democrat Senator Richard Durbin, limits the fees that banks can charge retailers for processing debt card transactions to 21 cents.
This compares to the previous average of 44 cents, meaning a substantial fall in revenues for the banks.
A Bank of America spokeswoman said: "The economics of offering a debit card have changed."
Sen Durbin said Bank of America's move was "overt and unfair" and that he hoped its customers would "have the final say".
"Bank of America is trying to find new ways to pad their profits by sticking it to its customers," he said.
Quote:
Shares in Bank of America have fallen 2%, a day after it announced plans to charge debit card users $5 (£3.20) per month to pay for their purchases.
Bank of America, the largest US bank by deposits, said it would introduce the fee early in 2012.
The move comes ahead of a new rule that will limit how much lenders can bill retailers for customer debit card transactions.
The bank's debit card holders will still get free cash withdrawals.
The monthly charge will apply to users of Bank of America's basic bank accounts, and will be in addition to any service fees they already have to pay.
A number of smaller US banks, such as SunTrust, a regional lender based in Atlanta, have already introduced charges for debit card purchases.
So far only Citigroup has ruled out introducing the change.
'Changed economics'
Bank of America said the new fee would be rolled out on a state-by-state basis.
Its move comes as an amendment to the Dodd-Frank Wall Street Reform and Consumer Protection Act goes into effect from 1 October.
The amendment, brought by Democrat Senator Richard Durbin, limits the fees that banks can charge retailers for processing debt card transactions to 21 cents.
This compares to the previous average of 44 cents, meaning a substantial fall in revenues for the banks.
A Bank of America spokeswoman said: "The economics of offering a debit card have changed."
Sen Durbin said Bank of America's move was "overt and unfair" and that he hoped its customers would "have the final say".
"Bank of America is trying to find new ways to pad their profits by sticking it to its customers," he said.
Bank of America paid no income tax for last year.
Credit Unions are the way to go.
Credit Unions are the way to go.
X 3 on the credit unions.
Now if they only did commercial...
Now if they only did commercial...
Originally Posted By: SteveSRT8
X 3 on the credit unions.
Now if they only did commercial...
Are you sure they don't?
Some do handle small business accounts.
X 3 on the credit unions.
Now if they only did commercial...
Are you sure they don't?
Some do handle small business accounts.
I was with BOA for a while when they bought out the bank I was banking with. We had a mixup because the wife deposited money in the wrong accounts so we overdrew by a few dollars. Went down to the bank found out what the mistake was and asked what the bill was then for getting the money back into the right accounts and paying the charges. The trainee had to tell the trainer how to do things and then later I got a bill for a couple of bucks because they still screwed up. Took three trips for them to figure out how to get it straight. Switched banks and haven't looked back. However I haven't seen much difference in the bank and the CU I also bank at. Both have similar rates and benefits. I don't blame Congress so much for the new laws. Everybody was whining so much about how terrible it was to have the overdraft fees, so Congress was somewhat pushed into doing something. As usual people didn't think ahead and now instead of the people that couldn't manage an account are getting off easy and the rest of us pay even though we do.
I guess the Harvard MBA's are moving out of Govt. and into the banks. John--Las Vegas.
Originally Posted By: ddrumman2004
I bank at a locally owned institution and if they decide I need to pay a $5 a month charge for use...so be it.
An extra 60 bucks a year won't break me.....although groceries might.
I should have been more clear. It's not the $5 I'm worried about. It's the never ending escalation of fees, once they start. I'd be willing to pay $5 too. But, next year it's going to be $7. Then $8, then $9, Then some banks are going to charge certain (risky) customers $15.
The loss of revenue has to be made up somewhere. Banks have become incredibly inefficient at using my money and providing a return. I fully expect fees to become a significant burden over a short period of time.
I bank at a locally owned institution and if they decide I need to pay a $5 a month charge for use...so be it.
An extra 60 bucks a year won't break me.....although groceries might.
I should have been more clear. It's not the $5 I'm worried about. It's the never ending escalation of fees, once they start. I'd be willing to pay $5 too. But, next year it's going to be $7. Then $8, then $9, Then some banks are going to charge certain (risky) customers $15.
The loss of revenue has to be made up somewhere. Banks have become incredibly inefficient at using my money and providing a return. I fully expect fees to become a significant burden over a short period of time.
It'll be interesting to see how many people cancel their debit card accounts. I never saw the point in having one.
Originally Posted By: Torino
I guess the Harvard MBA's are moving out of Govt. and into the banks. John--Las Vegas.
the banks outsmarted congress on this one. Love how the banks are saying it's congress fault that we now have debit card fees. "See what happens when you have regulation in the banking industry!" take that bank customers
I guess the Harvard MBA's are moving out of Govt. and into the banks. John--Las Vegas.
the banks outsmarted congress on this one. Love how the banks are saying it's congress fault that we now have debit card fees. "See what happens when you have regulation in the banking industry!" take that bank customers
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Originally Posted By: Cutehumor
Originally Posted By: Torino
I guess the Harvard MBA's are moving out of Govt. and into the banks. John--Las Vegas.
the banks outsmarted congress on this one. Love how the banks are saying it's congress fault that we now have debit card fees. "See what happens when you have regulation in the banking industry!" take that bank customers
Have you read all the Durbin rules? Some have zero to do with protecting the consumer.
Originally Posted By: Torino
I guess the Harvard MBA's are moving out of Govt. and into the banks. John--Las Vegas.
the banks outsmarted congress on this one. Love how the banks are saying it's congress fault that we now have debit card fees. "See what happens when you have regulation in the banking industry!" take that bank customers
Have you read all the Durbin rules? Some have zero to do with protecting the consumer.
Banks figured out they can make a lot of money on fee's with zero risk so they stopped lending and started to think up fee's to nickle and dime people to death with.
I won't take part in it, I only deal with local banks and credit unions.
They have my money and provide me with almost no return on it, while they are able to invest it themselves with a healthy return. I refuse to pay them additional fee's on top of that.
I won't take part in it, I only deal with local banks and credit unions.
They have my money and provide me with almost no return on it, while they are able to invest it themselves with a healthy return. I refuse to pay them additional fee's on top of that.
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