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!
Expect paper money to come back strong if they do this.
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.
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.
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.
That’s me. I’ll be TOTALLY screwed.
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.
Debit Card limitation? “It’s my money and I want it now!
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.
I use my debit card constantly. If they do this, a lot of people are going to blow a gasket.
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!
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.
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.
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.
>>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.
Oil em up.
bank of america again.
if there was one bank that EARNED the right to fail it is that bank.
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.
I always use cash only. I observed long ago that I seem to have more control on spending when using cash.
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.
... 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
With a $50 cap you couldn’t use your debt card to fill your car with gas.
Really? I use my debit card all the time but just use it as debit rather than credit—good to know
Forcing everyone back to cash.
Which would make the fedgov go nuts.
Bankers are mostly liberal elites. They don’t care about anyone EXCEPT each other...
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).
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.
“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”