Skip to comments.Banks threaten debit card spending limit
Posted on 02/20/2011 7:30:15 AM PST by FromLori
What if you go to use your debit card but find you have a $100 spending limit even if you have more money in your account? Right now, the idea is a bargaining chip being used by some of the nation's biggest banks, including JP Morgan Chase, Bank of America and Citigroup.
The change would have a big impact on shoppers. The average family spends $122 on groceries every week, so a simple trip to the supermarket might in the future require a stop at the ATM.
It all goes back to new rules that Congress is considering aimed at limiting the fees that banks can charge retailers every time you swipe your debit card.
(Excerpt) Read more at wfaa.com ...
Use cash. Problem solved.
Wow, great idea. Collapse the financial system due to regulation. Next thing that will happen is our paychecks will go directly to the government who will hire Goldman Sachs and BOA to pay us an allowance.
Beat me to it. Cash doesn't leave a paper trail either.
How is Barry’s “Hope and Change” working out for everybody so far?
Then they’ll charge fees for checks over $100 (or whatever else you could use to get the money from your account to your pocket). I was shocked that Wells Fargo is charging non-account holders for cashing paychecks issued by their employers drawn on a Wells Fargo account; it is basically a penalty for not opening an account with them.
I can’t believe this is legal, or that the companies using Wells Fargo aren’t forced to compensate employees for this.
Looks like I’ll be clogging up store check out lines like it’s the 70’s all over again.
An ATM card is supposed to be the same thing. It's a direct credit from my checking account.
If they limit my ATM usage then I go back to writing checks. So...what does one of them cost to process?
Guess what stupid banks who propose this? You do that and we take our business elsewhere.
Bingo! That’s the solution.
Just use the damn card as a Visa like most banks let you. You hit ‘credit’ instead of ‘debit’ and don’t put in your pin. Heck, Chase pays me 1-3% back from using it that was on a bunch of catagories too. I’ve always used it this way and have no idea why anyone would not.
I never did understand the utility of a debit card when one could use a credit card.
That is how I do it also..
Could it be for people who can't get a credit card? I've never had one.
My small-time (ok, they have been growing like mad) local bank gives me a dime every time I use my debit card.
Life long democrat lloyd blankfein Goldman sucks and jamie demon already own obama people can find a smaller conservative bank (one those the big global banks haven’t already wiped out) and put there money in those. That regulation is a joke but the joke is on us it already favors the big global banks. It allowed for plenty of time for them to increase the fee’s they charge you I wouldn’t worry too much about them they own the casino and the odd’s are in their favor. Frankly I’m sick of their threats we bailed them out.
Ok, that made me laugh.
I’ll go back to using checks too.
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Wells Fargo is now offering incentives to use the ATM card as a credit card. First thought was that the bank makes more off the merchant if the card is used as a credit card instead of an ATM transaction. I have at times used my ATM as a credit card but when the transaction gets to the bank it is treated as an ATM purchase.
banks make a lot of money from debit cards, they won’t jeopardize that revenue stream.
cash is good though, I’m moving that way regardless
Most people, like me, use a debit card to spend money they have and use a credit card to spend money they don’t hace (kind of like the government).
Why don't you go to your own bank and deposit that check there?
Debit cards replace checks, and you don't have to pay a bill at the end of the month. They should be an ideal solution, but the government-banking complex will always find some way to screw things up.
hace = have
need more coffee...
Where do you get the cash from?
The last time I was paid in cash was 1966.
It won’t be funny if this comes to pass.
Especially if you’re behind me in the line.
Do you remember lines at the banks on Friday afternoons?
I do. They sucked.
I do that via direct deposit (most of our employees opt for that), and not at Wells Fargo. I find it incredible that someone can basically be penalized because of their employer’s choice of banks.
When it is required that all paychecks become direct deposit - it is only a hop skip and jump away from having them remanded to someplace other than your banking institution. This requirement can be imposed by SSA on the basis of 'tax collection' efficiency. There is paperwork suggesting this start by a future date - like 2015. Hold on to your hats. Cash is king.
I can understand the recovering credit addicts, like Dave Ramsey, but for those of us who pay in full each month (I actually settle up each night before bed) and only buy things on the budget, rewards cards are the way to go.
BOA great for illegal aliens and acorn...
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“Use cash. Problem solved.”
Agree. The last time I was at Sam’s, I spent $500 buy some of my usual doomsday supplies and my check wasn’t accepted. Considering that I had at least $8k in the bank at the time (and no pending transactions), I was a bit ticked. It seems that they use an outfit called “Telecheck” which uses metadata, or some crap like that, to develop a customer profile and then determine whether the check is good or bad. They don’t seem to have access to the actual account info, as they tried to get me to punch in my account and security info at my bank (over the phone when I called them later), so they could hear how much was in it. I punted on that request. Now, I’ve been going to Sams for at least 20 years, and they know everything that I’ve bought (at least $50k), and they know my history with checks (perfect, of course). But I guess none of that matters now - if I don’t fit Telecheck’s criteria, I’m SOL, regardless of what’s in my checking account and whether they can IMMEDIATELY debit it (and whether I have proper ID, which of course I did).
In any case, considering that I’ve never been robbed, I have good hiding places, and bank interest rates are essentially zero percent, the only logical thing to do is remove a couple of k’s (in addition to my doomsday cash) and store them for Sam’s Club, or other places where I shop. I don’t really have the time to load up a shopping cart just to get rejected at checkout for no valid reason.
Credit cards work well, too. Actually, they better than debit cards. Debit cards are risky.
Side note: Credit cards have a limit too. I ran into it one time when I was filling up the gas tanks for my three cars... all within a couple of hours.
“If they limit my ATM usage then I go back to writing checks. So...what does one of them cost to process? “
Don’t count on that. See my earlier post. In my case, I guess I didn’t have enough ‘history’ writing checks to get approved...or some crap like that. Anyway, have cash, at least as backup, if you can.
Um, how do you get the cash, when most of us have our incomes direct deposited into our checking accounts, if there is a $100 limit on debit card transactions?
For those who actually still get checks, will the banks continue to “cash” them if the customers don’t deposit funds?
I would say that we would all have to go back to writing checks for everything, including groceries. The banks won’t like that, the grocers won’t like that, the customers waiting in line won’t like that.
My Sister uses her credit card for everything but writes down each purchase in her checkbook as if she had written a check - therefore reducing her balance by the amount of each purchase. when she receives her Visa bill, she just writes a check for the total and that check amount is already reflected in her balance. She earns points by using her Visa and can then cash them in for gift cards. I know my Visa offers a $25 Walmart card for 3500 points - The first time I realized that I cashed in so many points I got 12 $25 Walmart cards..... great stocking stuffers!
Thanks for the reminder, From. I need to pull out a couple of k’s just to be able to backup my checks now (see earlier post). Annoying, but it doesn’t cost me anything and I usually dress and drive in a way that makes me quite uninteresting to the bad guys.
“Debit cards replace checks, and you don’t have to pay a bill at the end of the month. They should be an ideal solution,”
I don’t buy it!
I’ve never used a debit card but I do charge $3-5,000/month on my credit card and pay it every month with an e-check.
I get all my bills by e-mail and pay them all by e-check and only pay one by mail each month.
I have never had a bank charge for anything in my life, all banking is free.
Me too. We have received thousands of dollars of “free” stuff from rewards points from our credit card.
Tons of DVDs, a couple of vacuums (one of them a Dyson), a couple of flat panel monitors, Satellite radio, etc.
Of course, I realize that the freebies are paid for in higher consumer costs.
And like you we pay off our credit card each month. We account for the charges in our budget so we know before we receive the bill how much we owe.
Retailers should start offering a 3% discount for check or cash purchaes.
I admit that I was a late convert to using them other than at the ATM machine. But for me it’s convenience. It’s quicker than writing a check. I don’t have any credit cards with points programs so I don’t see any advantage to using one of them and paying it off at the end of the month as opposed to a debit card that pays it immediately.
I agree - cash has advantages. It's anonymous. You know exactly how much you have to spend at any given time. And try as you might, you cannot overdraw your cash account - when you're out, you're out.
It's another vile and intensely stupid legacy of the Clinton administration. Hundreds of years of understanding what a check is and is not was summarily thrown out by the Clinton administration.
Now the current situation is that if you present an "on-us" check to a bank, that bank can consider *you* to be their customer, whether or not you have an account with them.
Since you are now suddenly a customer, you can be charged a fee, even for presenting an "on-us" check.
It's outrageous, it's stupid, and it makes no sense with respect to the hundreds of years of legal precedent dealing with checks, but, hey, it makes the banks some more dinero.