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Large banks to begin charging for debit purchases


Barb_
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Ugh!!! I use my debit card for everything!! Guess we'll be changing banks. :glare:

 

Me too!:iagree: This is ridiculous. I use a debit card for everything. I will just have to get cash from the ATM now and use that. I just worry about carrying cash nowadays and am not happy about this. There is a small bank in my county that doesn't charge for checking or debit cards. I guess they will now have my business.

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I used to love BofA and recommend them to all the people that were complaining about their banks. I realize it isn't just them but this comes on the heals of fees for checking that used to be free (unless you have a fairly high daily balance). I use my debit card for everything. Seems like we are going back to the dark ages cuz it will be all cash for us now. Guess that will keep me on a budget.

 

On top of that customer service is going downhill rapidly and interest rates are practically 0. I just got off a phone call that could have been the script for that commercial for Ally (sp) bank - press 1 for... Very frustrating and it seems like you can't win.

 

ETA: $8 and $12? Sheesh, our monthly fees are $14-$16. I think I am taking my $1.43 and going to play at another bank. They obviously don't want me and are trying to price us out.

Edited by jcooperetc
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This is just a side note, since this issue doesn't affect me personally, but for those who use their debit cards for everything - it's much safer to use your credit cards. We switched from using debit cards to exclusively using credit cards (unless we are at a bank machine getting cash) because of security issues. I feel 100% more safe now.

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This is just a side note, since this issue doesn't affect me personally, but for those who use their debit cards for everything - it's much safer to use your credit cards. We switched from using debit cards to exclusively using credit cards (unless we are at a bank machine getting cash) because of security issues. I feel 100% more safe now.

 

We do the same. I use my credit card the way I do cash in the sense that once a week or so I sign on to to the AMEX website, check and see what I've been up to and pay the darned thing off. My most recent payment never falls more than two weeks behind my current charges. You can make as many payments as you wish in a month by using electronic payments. Now when they start charging for that I'll go insane.

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Ugh. Dh would prefer to use cash. I wonder if it applies to online payments? If so, we may just be going the cash only route.

 

I wouldn't use a debit card for online transactions. Our credit card has been compromised online three different times and the credit card company has issued us new cards before we even knew what happened. Banks typically aren't as quick to catch those types of things.

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This is just a side note, since this issue doesn't affect me personally, but for those who use their debit cards for everything - it's much safer to use your credit cards. We switched from using debit cards to exclusively using credit cards (unless we are at a bank machine getting cash) because of security issues. I feel 100% more safe now.

That's exactly what we do.

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We have a premium account with them and I have often made the comment inside the bank that the day they charge me a dime to bank there I will be pulling my money out.

 

Hopefully this will not effect us, but if it does, we are DONE with BofA.

 

Dawn

 

We have a premium account too, and we don't pay a dime for it because we have our mortgage with them. My experience with BofA has been nothing but positive and the online bill pay and portfolio services are crazy convenient, but the minute they start charging me fees is the minute I'll go shopping at my local credit union. As it stands right now, I don't even pay for check reorders.

 

We use our CCs for most purchases anyway, and pay the balances off every month, plus I get benefits from them: rewards points from Capital One and Amazon Chase, and my Costco AmEx rewards always pay for my next year's Costco membership with plenty left over.

Edited by LemonPie
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This is just a side note, since this issue doesn't affect me personally, but for those who use their debit cards for everything - it's much safer to use your credit cards. We switched from using debit cards to exclusively using credit cards (unless we are at a bank machine getting cash) because of security issues. I feel 100% more safe now.

 

But if you can't get a credit card, then you have to use your debit card.

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Time to write checks instead of using a debit card when shopping, or use a credit card, and carry more cash to pay for lower cost items. That's what I will do, anyway. I don't have to use a debit card that costs me money when there are other options that don't cost me anything or that cost less.

 

But really, most people are so used to using a debit card that the banks will make a lot of money off their new fee. Most people won't change their buying habits for $5/month.

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watching CNN on it right now.

 

Banks are evil. Wells Fargo is the Bank Of Satan.

 

Tell me about it. They hold our underwater morgatge. I would love to refinance into a 15 year morgatge at today's rates. That would totally make me feel better about the house being worth half what we paid for it....I would feel like there's a light at the end of this veeeeery long tunnel. Btu no. They would rather we just go into foreclosure. :glare: Not that we're there yet, but it's always hanging over us with dh living out of state.

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SO glad I use USAA!!

 

And by the way, I talked to a USAA rep. the other day and he said that ANYONE, regardless of being a veteran or not, can use their banking services. But you can only get car, home, etc. insurance and other products if you are eligible to be a member.

 

USAA pays me interest on my checking account, plus, I can use ANY ATM and at the end of the month, they just refund me all the fees I've been charged by ATM's.

 

They have the best customer service around.... they can't be touched by ANY other financial institution.

 

http://en.wikipedia.org/wiki/USAA

 

I have USAA too. I love them for many reasons. But, they did just do away with the rewards program on the debit/credit cards....

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I just saw that on the news.

 

I use cash for 99% of my transactions and will just use a credit card for the rest.

 

I have been feeling insecure about using my debit card so this probably came at the right time for me.

 

 

:iagree: I've read so many horror stories here of hackers and debit cards, this is going to push me over to an cash system.

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From what I understand, we have the federal government to thank for this along with banks taking away the rewards program. The govt reduced what the banks can charge retailers for these transactions. So, in order for the banks to maintain their profitability, we now lose rewards programs and get charged for other banking services. I have not noticed prices going down at stores because they are paying less in credit/debit fees. :glare:

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From what I understand, we have the federal government to thank for this along with banks taking away the rewards program. The govt reduced what the banks can charge retailers for these transactions. So, in order for the banks to maintain their profitability, we now lose rewards programs and get charged for other banking services. I have not noticed prices going down at stores because they are paying less in credit/debit fees. :glare:

 

and this is all due to new government regulations. more to come, unfortunately!

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SO glad I use USAA!!

 

And by the way, I talked to a USAA rep. the other day and he said that ANYONE, regardless of being a veteran or not, can use their banking services. But you can only get car, home, etc. insurance and other products if you are eligible to be a member.

 

USAA pays me interest on my checking account, plus, I can use ANY ATM and at the end of the month, they just refund me all the fees I've been charged by ATM's.

 

They have the best customer service around.... they can't be touched by ANY other financial institution.

 

http://en.wikipedia.org/wiki/USAA

 

:hurray: After I left this thread I went searching around for banks and that was the one that came up. I had never heard of it and wasn't sure if it was fly by night. Thanks for the information. :)

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I have USAA too. I love them for many reasons. But, they did just do away with the rewards program on the debit/credit cards....

 

They had to do away with it b/c of the news laws that Congress just passed... the same laws the banks are using as an excuse to charge more.

 

I think you still get rewards on credit cards though. I think. I'll have to see if my current points go up :)

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can't get the article to pull up right now but does this also include using your debit as a credit (for those that have visa/mc logo)???

 

I NEVER run my card through as a debit...ALWAYS as a credit b/c our CU began charging us years ago for anything over 3 debits per month...

 

I'm wondering the same. I only use my card with the credit option (never the pin)... Our credit union hasn't made mention of fees for debit, though.

 

We switched banks this spring because BoA kept charging us monthly fees on our premium checking account due to "computer glitches". (Of course, they only refund them if people call and the refund only goes through at the end of the statement period so you have to be right on top of it then or you get to wait another month for the correction.)

 

We would move our mortgage from them, but we only have 8 years left. I don't want to refinance again. :glare:

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Marketplace aired a story on this today which brought up a good point. Banks will charge for the use of debit cards in lieu of the money they previously earned via "swipe fees" (now limited by Congress). But merchants were previously passing along the swipe fees to consumers. Merchants, now paying lower fees, may pass some of the savings to consumers. May.

 

So banks will make the fee explicit; it has been an implicit charge that consumers paid as part of the price of doing business. Unless you are a business owner with a credit card/debit machine, most of us were not thinking about that average 44 cent swipe fee that business owners paid every time we pulled out a debit card.

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You can get a free debit card through PayPal! When your PayPal account it empty, it automatically pulls funds from your bank account, and there's no fee. You also earn 1% cash back on any transactions processed as credit.

 

I love my PayPal card! :D

 

That's a big ole' DUUUHHH for me...why didn't I think of using my PP Card!

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Marketplace aired a story on this today which brought up a good point. Banks will charge for the use of debit cards in lieu of the money they previously earned via "swipe fees" (now limited by Congress). But merchants were previously passing along the swipe fees to consumers. Merchants, now paying lower fees, may pass some of the savings to consumers. May.

 

So banks will make the fee explicit; it has been an implicit charge that consumers paid as part of the price of doing business. Unless you are a business owner with a credit card/debit machine, most of us were not thinking about that average 44 cent swipe fee that business owners paid every time we pulled out a debit card.

 

Since you mentioned credit unions above... Do they also charge the swipe fees? Are they affected by the law change? If they are, I don't see how they'll avoid charging a debit card fee as well.

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Is there a nation-wide credit union to use?

 

My credit union is in CA and I live in NC. So, we opened a BofA account to have a national bank to go to.

 

I really have NO IDEA where we will be long term, so I am not really wanting to open a local credit union account.

 

Dawn

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I have not noticed prices going down at stores because they are paying less in credit/debit fees. :glare:

 

Actually, I did just notice that WalMart lowered its prices on a couple of things this week. It was only a few cents per item, but it was a pleasant surprise. I didn't associate it with the swipe fee change, but maybe that is the reason.

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Is there a nation-wide credit union to use?

 

My credit union is in CA and I live in NC. So, we opened a BofA account to have a national bank to go to.

 

I really have NO IDEA where we will be long term, so I am not really wanting to open a local credit union account.

 

Dawn

This is us too. We move ever 2-3 years. In order to not to have to change banks that often we went with one of the big guys. I suppose it is time to pay for that convenience.

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can't get the article to pull up right now but does this also include using your debit as a credit (for those that have visa/mc logo)???

 

I NEVER run my card through as a debit...ALWAYS as a credit b/c our CU began charging us years ago for anything over 3 debits per month...

 

I doubt it. The store pays for those. I always try to use my card as debit instead at small local stores because of that. There is a reason that the debit option comes up first and you have to hit "Cancel" to pay with credit. :001_smile:

 

Our C/U has an incentive points program, and you get triple the points for using credit rather than debit because it costs them less. So I usually use credit everywhere else.

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