Skip to comments.Debit card spending limit? Banks consider a $50 cap
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 ...
Lets see what happens when we pull all of our money out of their banks.
Debit Card Spending Limit Banks Consider a $50 CAP
Be sure to check out the comments under the video for more info.
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.
Ive used my debit card for over $1,000. If this becomes common guess Ill have to use my credit cards and just continue to pay them off every month.
OK, back to cash.
You can thank Scott Brown and all the Democrats.
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..
Another “fixed” problem courtesy of the EmoRats.
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.
“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?
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.
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.
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.
Wow, I don’t think I usually have a transaction under $50.
Use them as credit cards, don’t put the pin in. That’s alllll you have to do.
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.
“OK, back to cash”
And on to precious metals! What a way to cut out the banksters.
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.
No kidding. They are cutting themselves out!
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