Your debit card may soon be declined for purchases greater than $100 — or even as little as $50!
Chase Bank is considering capping debit card transactions because of something called interchange fees. Every time you swipe your debit card, your bank charges the retailer an average fee of 44 cents.
And those small fees can add up to about $16 billion a year, according to 2009 data from the Federal Reserve.
The federal reserve is proposing to cut those fees to 12 cents in July as part of federal banking reform.
Chase is already testing $3 monthly fees for debit cards and $15 fees on checking accounts in certain states.
The bank also announced in November that it will no longer issue reward debit cards.
(Source: CNN)
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6 Responses
In my humble opinion, debit cards provide no benefit to the consumer and should never be used.
There are many banks and credit unions who can undercut them and will easily take away there business. It could be they aren’t so thrilled with “retail” banking to begin with.
We need to tell our banks we will not stand for this and we will shop elsewhere.
We also need to thank the obama regime for this after all they are squeezing the banks.
You can’t blame the banks for wanting to make money but let them try other ways.
maybe I DAVKA want to use my debit card for large transactions because I do not want to carry large sums of cash around in my purse? Not everyone/everywhere takes personal checks. In my area, the small retailers also do not want to have customers pay with a debit card for purchases that add up to small amounts, because they get charged a fee for that transaction and it is not worth it to them. One take out place I know will no longer accept debit cards at all, only CASH.
4. good point!
I wonder what happened to the cost of doing business?
This action will cause a lot of problems for many people. We do not like to use a credit card, but don’t always have cash for a purchase. Using the debit card solves the problem.