Banks progressing to charging [credit card-like]fees for debit cards
By kmz1109
@kmz1109 (30)
United States
October 9, 2009 1:58pm CST
I heard on the news this morning that the banks are contemplating charging their customers fees for using their debit cards ; as opposed to using credit cards for their purchases. Many of us use our debit cards now because we've learned that we can save on interest accrual on unpaid balances;as well as, keep a better hold over spending cash that we don't have and to keep our budgets balanced. With this "recession" happening in the U.S., credit card companies are losing major bucks with the lower usage of their credit cards. This has the companies,banks,etc. thinking that they could attempt to perhaps recoup some of the losses by charging usage fees,transfer fees and several other service fees that apply to the debit card.
I know that our household budget has all but failed this year end. We now have no credit cards and only use debit cards; simply for the fact to try and rebuild our financial status back to "middle class" standards that we are accustomed.
How would this "debit card-fee" plan affect you?
5 responses
@artistry (4151)
• United States
10 Oct 09
...Hi kmz1109, I am not happy to hear this, maybe it won't happen, but it probably will. If it does, I will probably limit my use of my debit card and start sending out checks again. I would prefer that and spending the price of a stamp, than draining my checking account by fees being charged, every time I used my debit card.
It's always something, they will be charging you to access your own money. Way to go. Take care.
@alienstar (5142)
• India
10 Oct 09
Things will change in coming times and credit cards will be easily available again for sure.But right now it is only the global financial slow down has effected credit card problems.But, to be true it is better to deal with debit cards instead of a credit card for sure
@owlwings (43910)
• Cambridge, England
9 Oct 09
My bank already charge me more or less equivalent interest on overdrafts as my credit card does. A debit card (or checking account) charges interest immediately on any overdraft whereas a credit card gives you up to 56 days of free credit.
I make sure, now, that I rarely go overdrawn on my current account and that I always pay off my credit card completely when the amount is due.
If I know that I am going to have to pay out substantially more than I currently have in the account, I will negotiate with the bank for a loan (which is often rather cheaper than an overdraft facility). If it were a very large amount, then I'd consider a secured loan or a remortgage of my property.
I haven't heard of a 'debit card fee'. I imagine that this is something that US banks have cooked up. No doubt, if it seems to work, the UK won't be far behind!
@happy6162 (3001)
• United States
10 Oct 09
It would effect me because I use my debit card to buy the things I need because the stores do not take checks anymore. It is just another way for banks to make money. What they now charge for overdraft has gotten out of hand and now they want to do this. How do they expect people to live with all the new charges they are adding on?
@crysontherocks77 (1273)
• United States
10 Oct 09
It's crazy. It's bad enough that they charge for overages even if its just a few cents. now they have to charge for that too. Weren't they the ones pushing us onto checks, then the credit, then they say now use your debit card just like a debit card. This is really rediculous and someone needs to go and redo the whole bank system if they want to talk about reform. you couldn't go without a debit card. Most places now won't even take a check any more because of the convenience of the debit card.
