Debit cards: $50 spending limit coming?

Discussion in 'Politics' started by B_Marius567, Mar 10, 2011.

  1. B_Marius567

    B_Marius567 New Member

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    NEW YORK (CNNMoney) -- Declined! 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. Those little fees, however, add up to about $16 billion per year, according to 2009 data from the Federal Reserve.
    But as part of the Wall Street reform legislation that was passed last year, these fees are being slashed. The Fed is currently proposing rules that would go into effect in July and would cap interchange fees at 12 cents.
     
  2. Drifterwood

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    I'm probably being dumb, but what has the amount of an electronic data process got to do with its cost? That is why there was always a flat rate for debit cards. Why would a bank restrict the amount of your own money you can use? Are they just being churlish?
     
  3. B_Marius567

    B_Marius567 New Member

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    mastercard will lose money thanks to obama and may fire alot people that work for them in st. louis. obama dose not care about jobs.

    going from 44 cents to 12 cents is going to hurt mastercard so thay are trying to cut there losess.
     
  4. alx

    alx
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    Sorry but all that is total BS. Makes no sense what so ever, especially capping a transaction.

    Retailers pay a Higher fee on credit cards than they do debits anyway.
     
  5. Industrialsize

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    I'm a merchant. I was never charged for taking a debit card. The bank charges the user for the transaction, not the vendor. Credit cards are another story. As a vendor I was charged around 2% of the transaction. Credit card companies make HUGE profits. I wouldn't worry about their fiscal well-being very much.
     
    #5 Industrialsize, Mar 10, 2011
    Last edited: Mar 10, 2011
  6. nudeyorker

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    I would have to do some research on this but it sounds like they are trying to be prohibitive of people using debit cards so they are forced to use credit. I have a debit card that gives me airline miles and an Amex. I paid my credit cards off and I'm never having one again.
    Do you have a link to this issue?
     
  7. nudeyorker

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  8. parr

    parr New Member

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    I also thought the user got hit with the fees.
     
  9. phillyhangin

    phillyhangin New Member

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    Yeah, the credit card companies get it coming and going: They charge vendors for the "privilege" of accepting their cards and then they charge the cardholder interest on purchases as well. Credit card companies are in NO financial danger whatsoever.

    I wasn't aware that banks didn't charge vendors for accepting debit cards, though. My debit card comes with unlimited transactions (for now), so since I never paid a transaction fee, I guess I just assumed that the banks were charging the vendors like credit cards.
     
  10. B_stanmarsh14

    B_stanmarsh14 New Member

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    UK merchant fees, are born by the retailer here, and are normally fixed fee of around 50p per transaction for debit, and 2.5% for credit cards.

    Bizarrely in some cases due to banking charges for business accounts, it's cheaper if the customer uses a debit card here than cash, though this depends on the cost of the card terminal and rental costs.
     
  11. maxcok

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    If you want to break the monopolistic practices of the big financial institutions, bring down their double dipping usurious fees, and loosen their irresponsible control of the overall economy and their grip on your balls, there is a simple solution. Everyone should bank with a smaller local or regional institution. They're the ones that didn't benefit from the financial bailout and are dropping like flies around the country, while the political power of the big guys and their control over your financial life increases every day.

    I switched several years ago and couldn't be happier - all the same services of the megabanks including online and telephone banking, debit and credit cards, substantially lower fees, and outstanding personal service. There's the added benefit of knowing the money is reinvested to benefit my local community, rather than being spent on high priced hookers for Wall Street pigxecutives. Seriously, just do it.

    While you're at it, just stop buying stuff on credit. Do you really need all that shit?
     
  12. houtx48

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    ROFLFAO...........................................I hate when Obama dose not care.
     
  13. Drifterwood

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    By restricting the amount, they are enforcing a % fee for each transaction, at either 1.2% fro $100 or 2.4% at $50, rather like credit cards.

    Like you, I don't have a private credit card and I am fairly sure that customers would have something to say regarding banks restricting access to our own money. That said, they have a right to make a point to politicians who are trying to score points without understanding the consequences of more credit or more hard cash usage.
     
  14. B_Marius567

    B_Marius567 New Member

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    I never had 44 cents added to my bill whan shopping with a debt card.
     
  15. Drifterwood

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    The vendor pays the bank.
     
  16. arkfarmbear

    arkfarmbear New Member

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    I've had debit and credit cards for decades. The only time I've been charged a fee was when using an ATM. You mention the fee for the user. Is it "hidden"? Where? How?
     
  17. Bbucko

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    This whole thread smells like so much propagandist bullshit. Link please?
     
  18. B_VinylBoy

    B_VinylBoy New Member

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    Here's a story about it on CNN Money - Debit card spending limit? Banks consider a $50 cap - Mar. 10, 2011

    Chase just happens to be the bank I use right now, which is why I started paying attention to it. But if they did something this stupid I'd have no problem switching my accounts.
     
  19. Gillette

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    There's a way to sidestep the cap.
    If a purchase comes to 99.00 and there's a 50.00 cap you should be able to split the payment into two separate debit transactions. The bank is none the wiser and the biggest problem is a slightly annoyed cashier.

    Restaurants don't have a problem with using multiple cards to pay off a combined bill so I can't see why any other retailer would have a problem with it.

    VB, the article you linked to mentions banks are considering charging monthly fees for debit usage. Is that not the case now? With rare exception the banks in Canada already charge a monthly fee if you want unlimited debit card usage.
     
  20. MASSIVEPKGO_CHUCK

    MASSIVEPKGO_CHUCK Well-Known Member

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    As a cashier, I can tell that the reason possibly for this is that multiple transactions have to be approved, even with debit cards. Because, if you don't have the money in your account the bank will cover it one time, but charge you afterward and deduct it from your account after your next deposit.
     
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