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Debit card spending limit? Banks consider a $50 cap
http://finance.yahoo.com ^ | 3-10-11 | Blake Ellis

Posted on 03/10/2011 1:08:35 PM PST by Whenifhow

.....Your debit card may soon be denied for purchases greater than $100 -- or even as little as $50. JPMorgan Chase, one of the nation's largest banks, is considering capping debit card transactions at either $50 or $100, according to a source with knowledge of the proposal. Why? Because of a tricky thing called interchange fees. Right now, every time you swipe your debit card, your bank charges the retailer an average fee of 44 cents, which it shares with its partners. ....

And consumers would end up feeling the pain when Bank of America is forced to recoup costs "by increasing the cost of their everyday debit card transactions, limiting their payment choices, and impacting industry innovation," ..... Aside from mulling over a limit on transaction amounts, Chase is already testing $3 monthly fees on debit cards and $15 fees on checking accounts in certain states.

....

So with the Fed's proposed cap in place, banks argue they won't have the money to protect themselves against fraud. And, of course, the bigger the purchase the bigger the risk, so banks are considering limiting consumers' ability to pay by debit card.

...

But a Bank of America spokesman declined to comment on whether the bank would cap debit card purchases at $50 or $100.

...

If a cap like this does make its way into accounts across the board, consumers would be forced to write checks, withdraw cash from ATMs, or put their spending on credit cards. "The whole model on the debit card side is in flux because of Dodd-Frank," said Brian Riley, senior research director at financial services consulting firm TowerGroup.

...

Bank of America, for example, announced a $59 annual fee last month for its riskiest customers -- making up about 5% of consumer credit card accounts.

(Excerpt) Read more at finance.yahoo.com ...


TOPICS: Business/Economy; Constitution/Conservatism; Government; News/Current Events
KEYWORDS: banks; chase; fees; financereform
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I found that article via a video and under the video is this comment:

http://www.youtube.com/watch?v=XX7ugKUw9Cc&feature=watch_response

1 posted on 03/10/2011 1:08:42 PM PST by Whenifhow
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To: Whenifhow

Lets see what happens when we pull all of our money out of their banks.


2 posted on 03/10/2011 1:09:57 PM PST by DarthVader (That which supports Barack Hussein Obama must be sterilized and there are NO exceptions!)
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To: Whenifhow

Video
Debit Card Spending Limit Banks Consider a $50 CAP

http://www.youtube.com/watch?v=XX7ugKUw9Cc&feature=watch_response

Be sure to check out the comments under the video for more info.


3 posted on 03/10/2011 1:10:52 PM PST by Whenifhow
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To: Whenifhow

A couple of years ago the gas pumps were calibrated to not charge more than $50. Now it will have to be $100 to fill the tank.


4 posted on 03/10/2011 1:11:15 PM PST by Carley (WISCONSIN STREET NO DIFFERENT THAN THE ARAB STREET. UGLY AND VIOLENT)
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To: Whenifhow

Say what!
I’ve used my debit card for over $1,000. If this becomes common guess I’ll have to use my credit cards and just continue to pay them off every month.


5 posted on 03/10/2011 1:12:57 PM PST by R. Scott (Humanity i love you because when you're hard up you pawn your Intelligence to buy a drink)
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To: Whenifhow

OK, back to cash.


6 posted on 03/10/2011 1:13:59 PM PST by CodeToad (Islam needs to be banned in the US and treated as a criminal enterprise.)
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To: Whenifhow

You can thank Scott Brown and all the Democrats.


7 posted on 03/10/2011 1:14:09 PM PST by nhwingut (Palin '12... Accept No Other)
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To: Whenifhow

I have a Chase MC and DC. I’m a cash person and never use the debit part only when I have less cash. Started using cash when idiots in front of the line start using their debit, press buttons, wait for confirmation, approve. Just don’t cap me when I’m ordering online..


8 posted on 03/10/2011 1:14:47 PM PST by max americana
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To: Whenifhow

Another “fixed” problem courtesy of the EmoRats.


9 posted on 03/10/2011 1:16:05 PM PST by Drill Thrawl (I don't prep for the disaster. I prepare for the rebuilding.)
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To: Whenifhow

And for those of us who can’t use credit cards right now because we’re on a debt management plan paying ours off and can’t pick up any new consumer debt *at all*, this would be catastrophic. Thanks banks, thanks government. Between the two of you, you always find a way to screw the little guy.

}:-)4


10 posted on 03/10/2011 1:16:18 PM PST by Moose4 ("By all that you hold dear on this good Earth, I bid you stand, Men of the West!")
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To: DarthVader

“Lets see what happens when we pull all of our money out of their banks.”

You are free to do so, but how are you going to pay bills then?


11 posted on 03/10/2011 1:17:07 PM PST by proxy_user
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To: Whenifhow

I believe the method to their madness is to stop the folks from using the debit card and get them readdicted to the credit card.


12 posted on 03/10/2011 1:17:29 PM PST by anchorclankor (From the main part of Missouri)
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To: CodeToad

Yep. We switched from cash to plastic because it was “safer” and you wouldn’t get mugged. But the fact is, the banks mug us every day.


13 posted on 03/10/2011 1:17:35 PM PST by A_perfect_lady (Islam is as Islam does.)
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To: Whenifhow

Bank of America is a lousy organization to do business with. I wouldn’t have anything to do with them. I have a debit card but usually use cash. No one refuses cash and there are no fees for using it. I use a credit card for large purchases. Like most folks, I can live without a debit card.


14 posted on 03/10/2011 1:19:30 PM PST by Jim Scott
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To: Whenifhow

Wow, I don’t think I usually have a transaction under $50.


15 posted on 03/10/2011 1:20:27 PM PST by mnehring
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To: Whenifhow

Use them as credit cards, don’t put the pin in. That’s alllll you have to do.


16 posted on 03/10/2011 1:20:32 PM PST by Tolsti2
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To: DarthVader

I have been a member of a locally owned and managed Credit Union for 30 years and have not had to deal with a bank for a long time. I even have a large credit line with them so that I do not have to get “loans” from a bank.


17 posted on 03/10/2011 1:21:10 PM PST by wbarmy (I chose to be a sheepdog once I saw what happens to the sheep.)
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To: CodeToad

“OK, back to cash”

And on to precious metals! What a way to cut out the banksters.

http://utah.tenthamendmentcenter.com/2011/03/utah-legislature-approves-sound-money/


18 posted on 03/10/2011 1:21:24 PM PST by grumpygresh (Democrats delenda est)
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To: DarthVader

Our checks are automatically deposited. If they do this I will walk in and withdraw every penny every time a check goes in. They will not have the use of our money.


19 posted on 03/10/2011 1:22:10 PM PST by sheana
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To: grumpygresh

No kidding. They are cutting themselves out!


20 posted on 03/10/2011 1:22:15 PM PST by CodeToad (Islam needs to be banned in the US and treated as a criminal enterprise.)
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To: Whenifhow

Expect paper money to come back strong if they do this.


21 posted on 03/10/2011 1:22:24 PM PST by discostu (this is definitely not my confused face)
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To: CodeToad
You won't be able to use CASH either: Get ready people it's gonna get bad. In Florida the DOT is gathering a list of names for EVERYONE who pays with cash using anything over a $20 bill. watch?v=T6Et37o3_io Also check out the new FEMA videos that depict anyone using cash to be suspicious. No access to anything over $50 via debit cards and nothing over $20 in your pocket... It's all coming down. Toll Booth Tyranny http://www.youtube.com/watch?v=T6Et37o3_io
22 posted on 03/10/2011 1:22:56 PM PST by Whenifhow
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To: Whenifhow

These articles about higher bank charges for checking accounts and now debit cards are always about the biggest banks. Haven’t heard a word from my bank about any of this: still free checking, etc.


23 posted on 03/10/2011 1:22:56 PM PST by Will88
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To: Whenifhow
I'll leave my account open, but the day my direct deposit hits, I'll be there to withdraw it all, except for the minimum.

Cash only...of course, it's questionable as to how long that will be any good either.
24 posted on 03/10/2011 1:24:06 PM PST by FrankR (The Evil Are Powerless If The Good Are Unafraid! - R. Reagan)
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To: proxy_user

You can pay any bill with a Money Order. Far cheaper than what you pay for checking services when you add all the fees and BS up.


25 posted on 03/10/2011 1:25:02 PM PST by wrench
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To: anchorclankor

A lot of prepaid debit/credit cards are popping up all over. They are like your own mini-bank. Deposits from payroll can go directly into it, yet not to a bank.


26 posted on 03/10/2011 1:25:28 PM PST by blackdog
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To: Moose4

That’s me. I’ll be TOTALLY screwed.


27 posted on 03/10/2011 1:26:26 PM PST by piytar ("racist" has a new definition: anything critical of democrats in general and obama in particular.)
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To: Tolsti2
Correct. There are a few places like Aldi's which require a PIN, but for the most part you can get a debit card processed like a credit card by declining the PIN option. Some outfits even give you points for doing so.

Of the big guys, Capital One is one of the better ones.

Chase, Bank of America and the other illegal alien coddling banks can kiss my royal arse.

28 posted on 03/10/2011 1:26:40 PM PST by Vigilanteman (Obama: Fake black man. Fake Messiah. Fake American. How many fakes can you fit in one Zer0?)
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To: Whenifhow

Debit Card limitation? “It’s my money and I want it now!


29 posted on 03/10/2011 1:27:18 PM PST by mosaicwolf (Strength and Honor)
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To: DarthVader
Lets see what happens when we pull all of our money out of their banks.

The banks are not the culprit here. This is the (Dick) Durbin amendment to the Dodd-Frank Wall Street reform bill.

The bill, because of huge lobbying and contributions from retailers, limits debit card per-swipe merchant charges to 12 cents. The average swipe charge in the formerly free market was 44 cents. Debit swipe fees were for many banks the second largest income stream, behind only loan interest. Any private sector entity that has its revenue tampered with by the government has a right to seek to replace that revenue elsewhere, in my view.

The state of Minnesota announced it is challenging the constitutionality of this law yesterday. Ironically Target, one of the leading whiners that brought us this intervention into the marketplace, is home-officed in Minneapolis. So we'll see where this goes.

30 posted on 03/10/2011 1:27:32 PM PST by wayoverontheright
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To: Whenifhow

I use my debit card constantly. If they do this, a lot of people are going to blow a gasket.


31 posted on 03/10/2011 1:27:47 PM PST by reagan_fanatic (A communist is just a liberal in a hurry)
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To: Whenifhow

I could probably save a lot of money if they made me stop using a debit card and switch back to cash. I double-dog dare ‘em to do this!


32 posted on 03/10/2011 1:28:16 PM PST by Bryanw92 (We don't need to win elections. We need to win a revolution.)
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To: CodeToad
OK, back to cash.

Yep. A cart full of groceries will run you more than that limit. If I can't use it for that most basic of transactions, it's useless.

33 posted on 03/10/2011 1:28:33 PM PST by Billthedrill
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To: Whenifhow

My brother did a consolidation loan with BofA at what he thought would be 4.99%.

A week later the paper work came back as 14.99%.

Many smaller businesses have quit taking credit cards as payment due to the high fees. Debit cards will be next.


34 posted on 03/10/2011 1:30:17 PM PST by wolfcreek (http://www.youtube.com/watch?v=Lsd7DGqVSIc)
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To: Whenifhow

Those that come up with these ideas seem to think we have no choices. Well we do.

I do not need to use a ATM card to buy stuff. I can keep it to do my banking business but switch to either cash, check or credit card. They then lose the 44 cents per transaction they were getting.


35 posted on 03/10/2011 1:30:19 PM PST by CIB-173RDABN (California does not have a money problem, it has a spending problem.)
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To: proxy_user

>>You are free to do so, but how are you going to pay bills then?

Switch to a credit union. Direct-deposit paycheck. Leave enough in there to pay bills. Withdraw the rest.


36 posted on 03/10/2011 1:31:11 PM PST by Bryanw92 (We don't need to win elections. We need to win a revolution.)
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To: Whenifhow

Oil em up.


37 posted on 03/10/2011 1:33:07 PM PST by screaminsunshine (34 States)
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To: Whenifhow

bank of america again.

if there was one bank that EARNED the right to fail it is that bank.


38 posted on 03/10/2011 1:34:19 PM PST by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: Tolsti2

The interchange fees that banks charge merchants on credit card swipes is massively higher, generally a flat fee plus a percentage of the transaction fee.

That is the whole point of capping debit card transactions, to force the use of the debit card as a credit card so they can continue the interchange fee gravy train.


39 posted on 03/10/2011 1:34:29 PM PST by Valpal1 ("No clever arrangement of bad eggs ever made a good omelet." ~ C.S. Lewis)
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To: Whenifhow

I always use cash only. I observed long ago that I seem to have more control on spending when using cash.


40 posted on 03/10/2011 1:35:39 PM PST by ThinkingBuddha
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To: Whenifhow

this would be deflationary because banks would have merchants cap stuff at 50.

what about forcing multiple 50 transations.

how about airline tickets?

chase is stuck on stupid or in very very very very bad shape.

The CEO of Chase was on CNBC staying how they would not accept principle forgivness in loans. He forgot to mention the faudulent valuations used.


41 posted on 03/10/2011 1:38:20 PM PST by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: Whenifhow
I was thinking some mutual funds issue debit cards tied to a money market fund. I'll have to check with Vanguard.
42 posted on 03/10/2011 1:38:28 PM PST by Ken H
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To: Whenifhow
BS!!!!!!!!!!! I do not used or want a credit card... but so many transaction require a credit card (try renting a car with out one)of some type so I used my debt card with a high balance tied in to the credit card system...

... the bank gets the same fee ... what the bank (or others) does not get to is to control if you get credit or charge you interest

Now I know many have gone to using a debt card for their credit card.....

So here what you got coming...you make good money and have money in the bank... but the bank or government states ... "hey you fico rating sucks"(well hey the economy sucks we all took a hit and I do cash only now) ... no credit for you or very hi interest for you...

you say no problem I will use cash... then you get the business saying... we required a credit card for security... so no you can not do business with us

43 posted on 03/10/2011 1:40:34 PM PST by tophat9000 (.............................. BP + BO = BS ...........................Formula for a disaster...)
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To: Whenifhow

With a $50 cap you couldn’t use your debt card to fill your car with gas.


44 posted on 03/10/2011 1:40:57 PM PST by The Great RJ (The Bill of Rights: Another bill members of Congress haven't read.)
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To: Tolsti2

Really? I use my debit card all the time but just use it as debit rather than credit—good to know


45 posted on 03/10/2011 1:44:20 PM PST by funfan
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To: Whenifhow

Forcing everyone back to cash.

Which would make the fedgov go nuts.


46 posted on 03/10/2011 1:44:59 PM PST by redgolum ("God is dead" -- Nietzsche. "Nietzsche is dead" -- God.)
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To: Moose4

Bankers are mostly liberal elites. They don’t care about anyone EXCEPT each other...


47 posted on 03/10/2011 1:46:49 PM PST by GOPJ (http://hisz.rsoe.hu/alertmap/index2.php - It's only uncivil when someone on the right does it.- Laz)
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To: FrankR

Which gets you flagged by the DEA and others.

Operating on cash generates a lot of attention, and can end with the local cops seizing it as drug money (which they don’t have to prove in court).


48 posted on 03/10/2011 1:48:18 PM PST by redgolum ("God is dead" -- Nietzsche. "Nietzsche is dead" -- God.)
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To: Jim Scott

B of A was/is one of the chief players in giving undocumented mortgage loans to Illegal immigrants.

B of A has been an immoral entity for quite some time (I had a CC account with them several years ago - they kept changing their terms to try to squeeze more costs - even at one point trying to do a “retroactive” change that quickly got stopped.


49 posted on 03/10/2011 1:49:36 PM PST by TheBattman (They exchanged the truth about God for a lie and worshiped and served the creature...)
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To: nhwingut

“Playgirl” Brown is merely the metrosexual little brother of the RINO-Progressive Maine Twins...the cousin of Little Lindsay “Single at 53” Grahamnesty, the nephew of “Alligator Arms” McCain and the grandson of Richard “Hock-a” Lugar.

He is also a second cousin, once removed, to Lisa Murkowski, the never-ending Democrat agenda supporter and Sarah Palin detractor.

Scott Brown is a RINO and needs to be “primaried”


50 posted on 03/10/2011 1:49:53 PM PST by wac3rd (Somewhere in Hell, Ted Kennedy snickers....)
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