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Big Banks Blink on New Card Fees
WSJ ^
| OCTOBER 28, 2011
| ROBIN SIDEL
Posted on 10/28/2011 5:00:02 PM PDT by throwback
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Sen. Richard Durbin (D., Ill.), who wrote the provision which reduced merchant debit-card fees, sent a letter to Wells Fargo Chief Executive John Stumpf last week complaining about the bank's new charges. "It is certainly surprising that your bank would pursue this fee strategy in light of the consumer reaction that has been prompted by Bank of America's recent imposition of a monthly debit fee on its customers. If you were hoping that your new fee would go unnoticed, it has not," he wrote.
Now THAT takes a set! Take a chunk of an industries' revenue, and then stick your finger in their eye when they attempt to recover it. If I was a Republican in Congress, I'd be holding a press conference and calling Durbin names every day. Cowards.
1
posted on
10/28/2011 5:00:08 PM PDT
by
throwback
To: throwback
My Visa card just raised my interest rate to 9.5%, despite the fact that I have excellent credit and despite the fact that they have a record of my dealings with them that goes back three or four decades and in the past two or three of those decades, I have not paid a penny in interest.
Maybe they thought (correctly) that they wouldn't lose me as a customer since I don't pay interest anyway, but then again, how does it profit them to raise my rate?
2
posted on
10/28/2011 5:15:45 PM PDT
by
Graybeard58
(Of course Obama loves his country but Herman Cain loves mine.)
To: throwback
I'm always amazed at how many "normal" and successful people I meet who still don't understand that a bank is a business, not a public utility.
A thorough reading of Jose Ortega y Gassett's essay "Revolt of the Masses" is in order here.
3
posted on
10/28/2011 5:28:02 PM PDT
by
Alberta's Child
("If you touch my junk, I'm gonna have you arrested.")
To: throwback
BOA was among the banks that helped put BO into office. They support leftist causes all over the place. I have no sympathy for them.
4
posted on
10/28/2011 5:33:47 PM PDT
by
driftdiver
(I could eat it raw, but why do that when I have a fire.)
To: Graybeard58
“in the past two or three of those decades, I have not paid a penny in interest.”
so why would they want you as a customer?
5
posted on
10/28/2011 5:36:43 PM PDT
by
driftdiver
(I could eat it raw, but why do that when I have a fire.)
To: throwback
I hope Regions Banks rescinds their monthly $4 use of debit card charge because NOW I’ll be going Cash Only.
I may also change banks if they don’t.
6
posted on
10/28/2011 5:45:54 PM PDT
by
HighlyOpinionated
(I am Roman Catholic, US Citizen, Patriot, TEA Party Alumni, Oath Keeper, Voter, Auburn Fan!)
Click The Pic To Donate
"I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a moneyed aristocracy that has set the government at defiance. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."
Thomas Jefferson
7
posted on
10/28/2011 5:49:35 PM PDT
by
DJ MacWoW
(America! The wolves are here! What will you do?)
To: driftdiver
Because, somebody is making around 3% from the merchant, every time a card is used.
8
posted on
10/28/2011 5:55:44 PM PDT
by
jenbean
To: jenbean
A lot of someones get a piece of that 3%. Unless he’s using the card for a lot of purchases they are losing money on him.
9
posted on
10/28/2011 6:03:15 PM PDT
by
driftdiver
(I could eat it raw, but why do that when I have a fire.)
To: throwback
Industries don’t have any guaranteed future revenue unless it’s customers are desperate or stupid. These big banks have no real reason to exist and so can’t afford to chase off their customers.
10
posted on
10/28/2011 6:42:55 PM PDT
by
freedomfiter2
(Brutal acts of commission and yawning acts of omission both strengthen the hand of the devil.)
To: Graybeard58
My Dad’s credit is A1 and he never pays interest either and they raised his interest to 29.99% last year. Still pissed him off though.
He pays off the card every month, so you got to wonder what went into that decision.
11
posted on
10/28/2011 7:40:47 PM PDT
by
packrat35
(America is rapidly becoming a police state that East Germany could be proud of!)
To: driftdiver
Wrong.
The banks all offered free checking and credit/debit accounts to people, making all their money on the back end, from the merchants who accept checks or credit/debit cards.The merchants paid fees to the banks, to process checks, credit and debit cards.Naturally, those costs are passed on to the customer.
What changed?
The government has stipulated the rates banks can charge merchants for transactions, and banks have introduced new fees to checking account members.
Banks are like insurance companies.
They charge fees to guarentee transactions, absent the exchange of cash.
12
posted on
10/28/2011 7:41:59 PM PDT
by
sarasmom
(Rent a clue.)
To: driftdiver
BoA was also one of the biggest supporters of illegals, but for some reason most here on FR rush to their defense nowadays.
13
posted on
10/28/2011 7:42:17 PM PDT
by
packrat35
(America is rapidly becoming a police state that East Germany could be proud of!)
To: throwback
SunTrust is pulling the $hit on my wife’s special accounts and she is looking to move all her money to another bank now. She has 4 accounts there and they want to hit 3 of them up with new fees.
Her primary account would still be ATM free but they are going to charge another fee for the checking.
14
posted on
10/28/2011 7:44:24 PM PDT
by
packrat35
(America is rapidly becoming a police state that East Germany could be proud of!)
To: driftdiver
My father literally pays everything on his VISA and then writes a check at the end of the month. They raised his interest to 29.99% last year. Why?
He is never late and they are making plenty of cash off him on merchant fees alone. Its just stupid.
15
posted on
10/28/2011 7:47:10 PM PDT
by
packrat35
(America is rapidly becoming a police state that East Germany could be proud of!)
To: packrat35
Local banks here in TN are advertising NO fees on checking-debit cards even with low account balances. Get him to switch if he can.
16
posted on
10/28/2011 7:58:34 PM PDT
by
eyedigress
((Old storm chaser from the west)?)
To: eyedigress
My Dad is in Florida and since he pays no interest, he is not really affected.
My wife is looking at moving her accounts in the next month after she gets some finances in order first to not screw up.
17
posted on
10/28/2011 8:16:05 PM PDT
by
packrat35
(America is rapidly becoming a police state that East Germany could be proud of!)
To: driftdiver
so why would they want you as a customer? Because I average charging $2,000 or more per month and they make about 3% on that from merchants fees.
I get 2,000 or so points every month accumulated.
18
posted on
10/28/2011 9:04:59 PM PDT
by
Graybeard58
(Of course Obama loves his country but Herman Cain loves mine.)
To: Graybeard58
they make maybe 1%, there are a lot of middlemen in a credit card transaction.
1% of $2,000 is $20. It costs more than that to have you as a customer. Even if their profit is 3%, thats only $60. Add in those points and you are costing them money.
Again why would they want you as a customer?
19
posted on
10/29/2011 3:34:25 AM PDT
by
driftdiver
(I could eat it raw, but why do that when I have a fire.)
To: sarasmom
No I’m not wrong. Banks make a tiny amount on the transaction. They make most of their money on the interest.
20
posted on
10/29/2011 3:37:14 AM PDT
by
driftdiver
(I could eat it raw, but why do that when I have a fire.)
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