Big Banks Might Limit Each Purchase to $50 or $100?

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sdfinch
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Big Banks Might Limit Each Purchase to $50 or $100?

Postby sdfinch » Thu Feb 24, 2011 3:45 pm

Some of the nation's largest banks are considering a cap on all debit card transactions. Big banks including JP Morgan Chase, Bank of America and Citigroup might limit each debit card purchase to $50 or $100 if Congress approves new rules aimed at limiting swipe fees and including a possible transaction cap. "The bottom line is this forces a minimum 70 percent reduction in bank revenue”.

Continue reading at http://abcnews.go.com/Business/big-banks-threaten-debit-card-cap-jp-morgan/story?id=12951309


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Squid7085
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Postby Squid7085 » Thu Feb 24, 2011 3:53 pm

I typically always use my Credit card for anything more than $50, but I think thats just a generational thing. My mom on the other hand only uses her Debit card, its rare that she doesn't, this would hurt her quite a bit. The only credit card she carries on a regular basis is a Home Equity line of credit, and rarely carries a balance on even that. I think it would be great for me, I always think twice before making a big purchase if its going on credit, if its on debit, its a bit easier since the money is "there." However, something like that can easily be helped with putting a limit on the Debit card yourself, I don't really need the government doing it for me. Forget cash or checks, I carry neither.

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Mogul of Pineapples
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Postby Mogul of Pineapples » Thu Feb 24, 2011 7:49 pm

I saw this a few hours ago on the CNN homepage. What do you think the chances are that it is an empty threat to try and get the govt to back down on the fee reforms?

I suspect that's what it is.
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Postby monoron » Thu Feb 24, 2011 8:18 pm

IF my bank does this I will be switching that is a guarantee. If the big banks want to do that it will give us another reason to switch to smaller community banks and credit unions that are more ethical. This could be a positive move in that sense. The quicker we get rid of the too big to fail banks the better off and stronger America will be.

sdfinch
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Postby sdfinch » Fri Feb 25, 2011 3:23 pm

I guess I am the opposite. I use my debt card and cash most of the time now. I now keep very little money in the checking account. Knowing what the banks do with my money now, I don't want them to know how much I really have now. But I do have my account with BOA who is the worst now in my opinion. I know I spend over $100 at the store on food every week or two. It just seens as our govt gets more involved with trying to help, they actually just make it worse! The CreditCard Act is a prime example.

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Postby jeffysdad » Sat Feb 26, 2011 8:22 am

If you have decent credit, you can get a credit card. If you can get a credit card, I see no reason to use debit unless the merchant offers a discount for doing so.

The banks and CC companies have been winning the tug-of-war with merchants for years because they've been smarter and better organized. I would love to see the merchants get some organization and traction so they can beat down interchange fees, etc. This camp is far more diverse than the CC and banking interests and therefore less organized. Also, this game is being played on the CC and Bank field -- it's what they do.

Since the above parties have and will continue to act in their own interests, I will continue to act solely in my own interest by using the payment method that is the safest and most convenient for me and that pays me the most rewards of those available. Banks know this about me very well; merchants, not so much.
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Postby DoingHomework » Mon Feb 28, 2011 12:00 pm

I never use a debit card. Credit cards are far better because they offer better protections to the consumer. But this is clearly an empty threat. Banks cannot afford to turn away millions of customers.

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Mogul of Pineapples
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Postby Mogul of Pineapples » Fri Mar 04, 2011 9:59 pm

sdfinch wrote:It just seens as our govt gets more involved with trying to help, they actually just make it worse! The CreditCard Act is a prime example.


The Act did have a number of positive changes and helped those with bad credit, paid late, etc and then those with stellar credit got socked with higher APRs and new fees. Although it's hard to tell what negative changes are attributed to the CARD Act and what would have happened anyway due to the economy.

Since the above parties have and will continue to act in their own interests, I will continue to act solely in my own interest by using the payment method that is the safest and most convenient for me and that pays me the most rewards of those available.


I am right there with you. If the gas station would give me a 3% or 5% discount for paying with cash then I would but why should I take a loss for their benefit? With some small mom and pop shops I do make a conscious effort to pay cash if their business is struggling. Really though, it's hard to feel bad for most businesses because the studies have shown higher transaction volume with credit cards.

I never use a debit card. Credit cards are far better because they offer better protections to the consumer. But this is clearly an empty threat. Banks cannot afford to turn away millions of customers.


Amen to that!
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Chase Sapphire Preferred



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