Will new fees for the use of debit cards prompt you to change your banking habits?

Because of new limits on the fees banks can charge merchants, several large banks are about to start charging customers a monthly fee for using their debit cards. Today’s Question: Will new fees for the use of debit cards prompt you to change your banking habits?

  • Thomas

    It doesn’t matter to me, as long as it works in the Medical Marijuana dispensing machines I’m happy.

  • Hiram

    Yes, if the fee changes apply to me. I am very careful to avoid bank fees.

  • Emery

    I think prepaid debit cards will get these costs under control. As long as the banks totally control the payments systems, these costs will be excessive.

    This question is merely pointing out how expensive it can be to use bank cards due to massive bank charges and lack of competition.

  • Beth

    It won’t change my behavior for two reasons: (1) I bank with a small bank instead of one of the large vipers like BOA so my debit card is free. That said, I don’t use my debit card. (2) I started using cash only about 18 months ago and that decision completely changed my relationship with money. 18 months ago I was broke. Today, I’m debt free and have an emergency fund plus 6 months living expenses saved up, and still going strong. I encourage everyone to start using cash again. It’s amazing how differently you will treat your money because suddenly it’s “real”. I just wish I had learned this in my 20s instead of my 50s.

  • Suburbanite

    Yes. I monitor any bank fees and work to avoid them. I left the “big bank” to move to a credit union years ago due to low interest, high fees for every service and poor customer service. I will change again, if necessary.

    Banks have known, for years, that this revenue stream was under EXTREME pressure from the merchants. They should have had a better plan in place to mitigate their losses.

  • Chuck

    My bank (USAA Federal Savings Bank) doesn’t charge, and doesn’t plan to charge fees for debit cards, checking, or atms. I cancelled my Wells Fargo account because of fees.

    Most banks have, over, the last 10 years added charges for everything they can, while paying very low interest rates on checking and savings account. Some in charge a fee for walking into a bank and making a deposit with a teller.

    It is necessary to charge exorbitant fees to customers so that senior executives can continue to receive exceptionally lucrative pays packages. Good example in MN is the compensation package for the TCF CEO. Those salaries don’t include a plethora of non-taxable perks.

    All the while, tellers and other staff make next to nothing.

  • Paul

    Won’t change behavior, will change banks.

  • Clark

    I work in the financial services industry and am always amazed how the public believes there is no cost to maintaining the complex computer systems and security required for both debit and credit card transactions.

    The fact that I can use my debit card at an ATM in Moscow or Shanghai requires significant investments.

    As usual, idiot far left democrats, most of whom have never held a REAL job in their lifetimes, also don’t understand the law of unintended consequences.

    Who is really hurt by the reduction in debit card transaction fee’s as part of Dodd -Frank, low income consumers. If your balances are high, you won’t be charged a fee. If you have a low balance, expect to pay for both debit and checking.

    Given the fact we have a clueless community organizer as president, I expect more of the same.

  • linda

    Yes, I will write checks. Our bank paid us to use the debit cards. So if they they charge us, I will simply go back to using checks.

  • Karl

    Banks need to make money…who doesn’t? They make money on both ends of a debit card swipe. Discount/swipe fees can be more than the postcard the 20-something just bought. With some card agreements, retailers have little leeway to deny card use by customers. It is not uncommon for a card processor to charge $20/month to download a merchant statement on top of the discount fees, the per transaction fees and the cost to transmit the end of day settlement. Credit/debit cards are a convenience/curse for retailers. Don’t even get me started on rewards cards. Everybody, including consumers who don’t use credit cards, pays for those. Have a nice day.

  • All this buzz about Bank of America’s and other large banks’ new fees confirms what I’ve known for years about the benefits of credit unions. Credit unions are cooperative financial institutions, which means that they are owned and directed by the people who deposit their money there. Since they are owned by the people they serve, they naturally operate in the best interests of those this serve. This means lower loan rates, higher savings rates and fewer fees. For those who are not credit union members, I encourage you to check them out at http://www.asmarterchoice.org. For those of who are credit union members, I encourage you to share with your friends the awesome things that your credit union does for you.

  • Gordon near Two Harbors

    I might switch banks, but I suspect that all banks might follow suit and charge fees for debit card use.

    Ideally, banks should start slashing the inflated salaries of their higher paid employees, just as health insurance companies should.

    But, of course, they won’t.

  • BenCh

    Banking habits? No. Bank? Yes.

    Once my free college checking is over with Wells Fargo I am switching to a different, probably smaller, bank.

  • david

    Is it just me or does anyone else see the typical right wing hypocrisy in Clark’s post? If it wasn’t for the partisan slurs I could see his point, but because of them I had to think about his post in more depth.

    I bet he jumps up and down screaming that government needs to cut spending, and not raise taxes (increase revenue). But I think the to big to fail banks need to do that exact thing too. I dropped wells fargo quite a while ago because of their growing ridiculous fee structure, and their un-scrupulous ways they would apply them. Like how they deduct debits largest to smallest, and then adding in deposits after in the hopes to generate over drafts and their associated fees. And if all these big bank executives hadn’t paid themselves exorbitant bonuses after accepting government bailout money they might have a leg to stand on too. Welfare is welfare when you’re not cashing the checks I guess.

    If these too big to fail banks hadn’t gone and wrote mortgages to people they knew would never ever be able to pay them back, and when that policy bit them in the ass they go to the other extreme and hold on to their money instead of doing what they need to to get the economy going again, I might have a smidgen of respect for them. Instead of fees how about loaning some money so people can buy these vacant houses I see everywhere. Scrooge McDuck.

    I personally am done with the big banks, and I hope others follow me in droves. As soon as you can get used to not having a branch office on every corner like they were McDonalds, credit unions look real good. It’s nice to get a little interest on your savings, instead of ridiculous fees. Just how often do you need to use the ATM in Moscow anyway?

  • Bear

    большинство ATM’ s в Moskow не безопасен … I will change banking practices … can’t pay bills with cash but will most likely go to automatic payments via American Express and then pay off every month as I do anyway … banks may be biting the hand that feeds them and their off the chart executive salaries.

  • david

    Good point, most aren’t safe bear. That’s why it’s really better to leave the ATM card at home and just bring a visa or amex card and pay off the balance when you get home.

  • Brad Johnson

    We’re dumping Wells Fargo the same day they implement the fee.

  • Sheri

    Personally the argument that ‘we are not making as much profit as we used to so we need to charge you more’ has never been persuasive. I plan to look for a good credit union and suggest others do the same.

  • Cary

    I don’t use BoA, but I would drop my account over $60 a month. I do use a credit union for most of my finances, but I did have a Wells Fargo checking account. About one month ago, they informed me that they would be implementing a $5 fee per month for accounts under $1500 balance or so. I closed that account and went to another CU for my local checking account. Customers do have options, and I would suggest they vote with their feet.

  • EAL

    Strongly suggest reading the economics book, “TANSTAAFL” The title translates to “There Ain’t No Such Thing As A Free Lunch”.

    We appeart to be living in an era where many expect somehting for nothing or something where someone else pays.

    This is not rocket science. At the core essence of freedom is persaonal property and accountability. Perhas instead of parents and shcools emphasizing “green”, emphasizing “diversity/tolerence’, emphasizing “political correctness” the masses always looking to be up in arms about somehting would recognize what it takes to build wealth in a free society.

  • GregX

    No. I belong to a credit union and have never used a debit card. I pay off my credit card in full every month – except for those rare months when I have a valid high-cost emergency expense.

    []=[] as for the comment “We appear to be living in an era where many expect somehting for nothing or something where someone else pays.” ….. I would resond that the converse is true as well – any organization that can obfuscate how it delivers services and their costs will always over-charge. In banking – the ways in which banks charge per activity fees, general fees, vary rates paid on accounts, and embed extra costs-fees are neither transparent – nro seem to bear any relationship the actual cost to the bank .. except that they always make money off of it.

  • Kim

    The post by Clark is correct. What many fail to realize is that this banking move is the direct result of the Dodd-Frank regulatory bill. If people don’t over use their debit cards,if they learned to balance their accounts then they would never have had over draft fees. But Obama idiology says we have to protect the idiots from the evil banks yet, he looks the other way when it comes to the chief architect of control, the Federal Reserve bank that was supposed to be in existence for one person_ to maintain the value of the dollar, not to use policy to make a presidential admin. look good.

    It is now past three weeks of the SEIU union organized protests on Wall Street but why has our President NOT said on word on this or attempted to stop the protests that are disrupting traffic and affecting non Wall Street every day people? Why is Obama silent on this?

    Hmmmm_ lets take a look at who Obama surrounds himself with, it is not his main cabinet but low and behold, what we see is Trumpka from SEIU standing beside him at announcements and speeches! We also see Francis Fox Piven, the old little lady from the Bill Ayers era, the fomer SDS and Weathermen radical, she is the same one calling for civil disobedience. She said in an interview on NPR in 2010, ” where are the protesters, the youth to protest, we need them to rally, and maybe we need them to show some civil disobedience in the streets as we did in the 60’s.”

    We see SEIU’s Steven Lerner on tape, calling for riots and attacks against CEO’s. In 2010, SEIU and ACORN busses pulled up to a CEO’s family home to mob their yard while his teenager son was home alone..the news covered that. Lerner called for protesting against capitalism and calling for civil unrest in the streets yet, OUR OWN PRESIDENT refuses to have Eric Holder investigate Lerner. Why? Because the elite Union leaders are his advisiors.

    This banking issue is just a part of the far left movement toward “fundamentally changing America, as Obama spoke of. Today we see the protestors, organized from SEIU, to cry out against the ” Neo-liberals” That is done to try to distance Obama from this orchestrated movement of his cronnies by falsely implying the movement is not affiliated with him.

    In the past three years, the game plan seems to be to use Class Warfare and Social Justice mantras to persuade people to give up their Republic of the USA. Recall it was Obama who said, ” spread the wealth is good for all…and there’s come a point when too much income is too much.” The great dictator will decide how much anyone can make?..Hmmm, what economic system does that sound like?

    Th National Socialist Party used these same tactics in 1933 to take control. They used class warfare tactics as well, before openly blaming the Jews for their troubled economy.

    So before we cry out against the evil banks know this fact: Banks were told that if they didn’t make the “no down payment ” low interest home loans to even those with no credit or no verified income, then they would be penalized in the rate from the Fed but, according to the Clinton ordered act, it states that banks could do the alternate if they choose not to make those bad loans by instead making contributions to ACORN. How is that for engineering and manipulating the system?

    When too many bad loans were made, the risk got too high, then Fannie and Freddie Mac jumped in to guarantee the mortgages. Which now in Congress were involved in Fannie and Freddie, raking in huge bucks? Surprise_ Dodd and Barney Frank.

    Today we should ask this: what is the bigger picture with George Soros’ stated goal of centralizing all banks as he calls for within his Open Society of one world economic governance?

    If one looks closely at the recent Dodd-Frank bill we see that the political campaign contributors that manipulate company value (i.e., the hedge funds managers that are most influencing the day to day stock price) are completely__ isolated__ from any new regulation against them unless if involved in sale of gold bullion and transfer of such out of the country.

    I hate to say it but that damn Glenn Beck predicted 2-3 years a go that these events would come ..he called the Arab Spring would spread, the gold price run up,the banks would be bailed again, that Libya Freedom rebel fighters would be from mostly Muslim terrorist groups, the Muslim Brotherhood would move in, the same terrorists that crossed the border to aid Palestine over the past ten years or more. Now the military has to go in with boots on the ground to find and secure the arsenals of weapons took by the so called freedom rebels from Quadafi’s compounds….great, we have hundreds of ground to air missiles loose and held by those who supported killing Americans.

    If Obama respected the Republic and was not a smart puppet of the global order group, America would be better today.

  • John

    I was a customer at Wells Fargo but now I’m pulling my money out and moving it to a credit union. I want the too big to fail to fail. The criminals should have went to prision but the administration (Bush/Obama) did nothing.

  • GregX

    I work in the financial services industry and am always amazed how the public believes there is no cost to maintaining the complex computer systems and security required for both debit and credit card transactions.========================== I for one do pay for real value. the US financial system has, however, fought off real innovation for decades infavor of their beauracratically entrenched business practices, technology and customer relationship model. the number one thing your business sector could do is to open the books on your operational costs – and evolve a pattern of keeping that information public. there is an excessive tendency to charge the “extreme case costs ” to every customer for a variety of similar – but less difficult to process – activities. Just an observation – but your CRM is strictly designed to justify draconan practices and not to evaluate where the institution can CUT customer costs. — essentially you only optimize for the bank. time to think about the customer as a shareholder.

  • Me

    Shut up kim, no one wants to hear your delusional ramblings anymore.

  • Alison

    Yep. If my bank starts charging fees I’ll either switch banks, maybe something small and local, or switch to cash.

    But the banks are doing this because they have to remain profitable. Of course profitable means paying CEOs tens of millions of dollars. Hard to imagine how they could get by on any less.

  • Gordon near Two Harbors

    Kim, Where do you get your “information/ideology? Fox “News”? Are you a clone of Michele Bachmann? Are you even an American? Let’s see the birth certificate.

  • Joel

    It’s been a while, so there are probably some people who may not remember the pre-Debit Card era.

    All Banks sold all of us on using ATM’s and debit cards as a way to reduce their overhead costs and avoid check charges, minimum balances, new extra charges and usage fees They created strong incentives to shift to automation over the personal banker and human tellers. Now, despite already charging over twice the amount of the cost of a transaction (about $.10 to $.12 per) they now see their cost-saving solutions as a profit opportunity.

    I say, save the $60 per year debit card charge. Get rid of your debit card. Use the human tellers, use cash, write checks, use credit cards. If they start charging for those, switch to a better bank. We have been with W-F for 33 years (three accounts plus our mortgages). They have made HUGE amounts of money off of us. If our bank rewards us with further charges like these for the sole purpose of maintaining profits, think again. We will jump banks in an instant when that comes to us. There are plenty of good Credit Unions and banks out there that still care about their grassroots base.

  • GaryF

    Kim makes good points. Is it that you don’t want to listen to a diversity of views? Is conservative/capitalistic thought not part of what your definition of diversity is?

    If anyone was naive enough to think that the Dodd-Frank bill wasn’t going to force the banking industry to change, well it did.

    Change banks, shop around. You have the power of the free market to decide who you want to bank with.

  • Kim

    @ Me who writes, “Shut up kim, no one wants to hear your delusional ramblings anymore.”

    Please show all readers where anything written is not true. Then I will gladly accept your position.

    The truth is never easy and it is often painful. When the Federal Reserve can no longer control all banking only then the free market will function and that_ will end the debit card fee because they can start to compete for solid customers instead of having to replace lost revenue from those of the ” wa wa wa…an over payment fee?_ but I am entitled to free everything” group, the wa wa wa whiners are the same that continually exceed their account balance which is no different than writing a bad check knowing the funds are not there….personal responsibility is the answer.

  • Noah

    //….personal responsibility is the answer

    and how do you afford your personal responsibility Kim? What kind of household did you grow up in? One of abundance? One where your expenses are paid for?

    How have you been able to secure employment in the past? Kin referrals? Family connections?

    Real people are living paycheck to paycheck to make ends meet and so these kinds of additional fees are unaffordable. These are the people who live in the real world and not the world of entitlement. They have no connections to make their bad dreams go away. They have to take life on life’s terms and it is these kinds of terms that banks are enforcing that will make life even more difficult.

    So to answer the question,

    yah people join the credit unions and use cash more often. Buy within your means and buy the big items only when absolutely necessary and we will see which boat sinks first.

  • me

    OMG!!! the kim/roul weirdo is glen beck!! I was thinking it was michelle bachmann, but couldn’t figure out how bachmann could find the time to post these long rambling tirades (even if they are just copy/pasted from teabaggerconspiracytheory.com or where ever it gets them), when mrs. bachmann spends all her time chasing cameras and spotlights around instead of doing her job.

  • kim

    @me comment:

    Your comment is not what I’d expect from a gentleman. Name calling vs. addressing historical facts does not sway anyone’s opinion.

    Spending $60.00 a month for the use of my own funds through a debit card is more costly than any checking account by the old fashioned paper checks. I switched to using the Discover card instead of debit card. Cash back and a bit of protection for false use is just fine with no credit card fee. I think Wells Fargo will change their mind on this practice.

  • Thrifty

    I received a letter from the last retail bank with which I have an account outlining their new $15/month service fee for debit cards. I plan to close this account ASAP and will be moving the funds to an account with a local credit union where I earn 3.01% interest on up to $25,000, pay no service fees and get ATM fees from non-network machines refunded. Retail banks are sucking ordinary Americans dry. The exorbitant fees charged for “conveniences” and other predatory practices are leading to record profits and sky-high bank executive salaries while the middle class and poor languish.

  • Bear

    @ me, you mean the some people are posting under pseudonyms and maybe the same person is using more than one? Wow. Take solace in they may be able to use another name but their writing habits and style are hard to change or disguise 🙂

  • Carrie

    I don’t need to change my bank or banking habits. I belong to a credit union.

  • jack Goldman

    I never, never, never pay bank fees. NEVER.

  • Anna

    We can use debit cards at Medical Marijuana dispensing machines?

  • Dan

    No way. Like many posters so far, I’m with a credit union and I love it. No fees, friendly service, and the money stays in my community.

  • Peter

    I expect to limit or eliminate debit card use and move to writing checks and paying cash.

  • CF

    My financial institution doesn’t charge fees for debit card use, has free check printing, (one box will last me ten years), and they refund other bank’s ATM fees. I can only reason that the worst bank on planet Earth, Bank of America and the two tied for second worst, Wells Fargo and TCF, would do this to purposely further piss off their customers, (as if their worthless customer service wasn’t bad enough), and lose even more business. I wonder what college educated, overpaid CEO thought of this one. I guess in post-graduate college they teach that printing, mailing and processing paper checks is a lot cheaper than a purely electronic transaction of a debit card. Yup, that’s why they get paid so much, they’re geniuses.

  • Kim

    @CF who wrote, “I wonder what college educated, overpaid CEO thought of this one. (i.e..debit card fees)

    One only has to read the Dodd-Frank Bill they passed in the DFL led Congress to get your answer.

    It sure wasn’t the idiots that protest on Wall Street and tried to close the bridge. Maybe MPR should ask the Question about who and what are these protests??? I was dumbfounded to hear the interviews of these protests aying, ” In Egypt they protested and closed down the government,…or, we need a fair system and over throw capitalism..or…we can’t have them making $500,000 a year.” AND Obama says nothing but gives quiet support for this far left radical progressive fascism..wow, no wonder he won’t be re-elected in 2012 and it won’t be because his boys caused debit card fees.

    Those idiots don’t understand that corporations do not pay taxes, they just pass the cost along to consumers. Excess regulations and high frequency trading are the real issues. Hedge funds ought to be limited to long trading, when shorting a stock betting it will fall, leads to George Soros antics. Recall that George Soros was the one who wrecked havoc by shorting the British pound…wiping out millions of pensioners savings. Soros was hye one who went on and on in his inteviews about how fun that was and how he got addicted to collapsing regimes in other parts of the world..and he lives among us and supports Obama so what does that say about our Lead from Behind Obama???

  • Steve the Cynic

    They don’t affect me. I haven’t used an actual bank in decades, having switched to credit unions long ago.

    May I just point out that “financial services industry” is an oxymoron. An industry is an activity that produces something of value. “Financial services” produce nothing. They’re necessary for a well functioning economy, but something is wrong when bank execs are payed obscenely large salaries and bonuses. The banking system’s relationship to the overall economy is sort of like oil in your car’s engine. Without it , the engine will seize up and quit working, but it’s not what actually produces the power. Once you have enough, more isn’t any better. And if you have too much, it can damage the engine.

    As long as banks are helping the real engine of the economy (actual industries) produce more power, they serve a useful purpose, but the banking system we have now is more like a swarm of blood-sucking leeches. The excessive swipe fees that used to be allowed are a prime example. They were little more than a way to skim profits off of other people’s economic activity. If free marketeers object when the government does that through taxes, why do they think it’s okay when too-big-to-fail oligopoly banks do the same thing?

  • Steve the Cynic

    Kim, even if every single one of your assertions were factually accurate, that doesn’t mean you’re speaking the truth. Truth also has to do with the inferences one draws from one’s facts. In the case of your screeds, many of your supposed inferences are nothing more than innuendoes. Take, for instance, Obama’s association with Bill Ayers. Yes, it’s true. It exists. What does that mean? Does it mean Obama approves of what the Weather Underground used to do, or the ideology that drove it? No! Maybe you have an ideological litmus test for people you claim as friends, but most folks don’t. How about the fact that he listens to people like Jeremiah Wright and Louis Farrakhan? That doesn’t mean he agrees with everything they say. An intelligent, thoughtful person will listen to a variety of opinions, not just those one already agrees with.

    I have a friend who’s a radical libertarian, to the point that he borders on being an anarchist. Does that make me an anarchist? Certainly not. But if I were a target of one of your rants, you could point out that association and then wonder when I might start throwing molotov cocktails. I have another friend who’s a self-professed communist and an ardent pacifist. Does that association make me one, too? That would be a spurious inference. In college, I read the Communist Manifesto. I wrote a paper on it. I said I agreed with some of Marx’s points. Does that make me a marxist? You wouldn’t say so if were to read the whole paper I wrote, where I ripped his overall theory to shreds. But that wouldn’t matter in one of your postings here. You would quote the snippets where I acknowledged some minor points where I thought Marx was correct and then conclude I was an enemy of America.

    That’s why I don’t need to research the accuracy of your “facts” to know that your assertions are not worth taking seriously. But even at that, why should I assume you’re getting the “facts” right, when you keep making such a basic mistake as referring to the “DFL led Congress”? Once again, Kim, the DFL is the Minnesota branch of the Democratic party. No one outside Minnesota is a DFL-er.

  • Kim

    @Steve the Cynic

    For the record, Obama was tight with Rev, Wright until he was elected so maybe his 20, yes 20 years sitting in that church listening to anti-white, Marxist anti-american rhetoric was just to get their endorsement for office. Ok..so maybe he did play him for garnering votes He had Bill Ayers host his senatorial coming out party and had Ayers write one of his so called autobiographical books for him. If you read both books of Obama I am sure you can see that one is excellently written and the other is poor_ clearly it was not composed by the same writer. Obama spent much more time with Ayers in Chicago then he admitted to while campaigning for President because he knew it would look badly for him..hanging out with a scum bag like Ayers that should be in prison for life sure says something about the Obama persona.

    Then we have SEIU leader Trumpka who continues to sit beside Obama today at photo shoots..birds of a feather flock together, they share a common belief system of values.

    Did you know Obama used to do cocaine in grad school and used to spend his free time among Marxist professors to listen to them espouse anti-american, anti-capitalism desires?

    But don’t bother researching the facts. I have to go by what Obama says in speeches and his campaigning rants. In his words, ” we will fundamentally transform America!” And his lovely liberal wife that said, ” we have to change our values, we have to re-write history.”

    Three years later and America is worse than when he took over. The only thing he has done well is increase drone attacks..wow, and he added another two wars to the plate, that makes Bush look like a dove. 🙂

  • Steve the Cynic

    More of the same, Kim. Only this time you begin with a demonstrable falsehood: “For the record, Obama was tight with Rev, Wright until he was elected…..” Are you too young to remember the fact that he publicly broke with Wright’s church before he had even secured the nomination? And then there’s the question of whether his association with Wright even matters. Do you go to church, Kim? Do you agree with everything the preacher says?

    And then you end with another ridiculous comment: “The only thing [Obama] has done well is increase drone attacks….” Are you telling us you don’t approve of his taking single-payer off the table before work even started on health care reform? If he’s really the radical leftist you try to paint him as, why would he do that?

    Keep writing, Kim. Every time you do, you give more evidence of how silly ideologies of all sorts are. Folks like you are not looking for the truth. You’re only looking for support for what you already believe.

  • Jason

    If you consider changing banks a change in my “habits”, then yes. In reference to Steve the Cynic’s analogy: when the oil in your car gets dirty, change it.

    Here’s the deal: I allow the bank to use my money to get rich. In return I get the security of knowing my money is safe and available when I need it.

    So now they want to slap a fee on me for a normal service that’s part of this arrangement? Maybe I’ll start charging them a fee every time I make a deposit.

  • Dee Ann

    I am cutting up my debit card and will use checks or cash through my CREDIT UNION! I took my money out of the preditory vaults decades ago. Banks have since the beginning of time been bloodsuckers without collective conscience. When money is your bottom line and growth is your only goal you will do anything to your cusyomers to take what you want for whatever bogus justifiction you can come up wih. Preditory , pure an simple! That’s where we are. It will change because it is immorral. and will not be born by the public!

  • Dee Ann

    I am cutting up my debit card and will use checks or cash through my CREDIT UNION! I took my money out of the preditory vaults decades ago. Banks have since the beginning of time been bloodsuckers without collective conscience. When money is your bottom line and growth is your only goal you will do anything to your cusyomers to take what you want for whatever bogus justifiction you can come up wih. Preditory , pure an simple! That’s where we are. It will change because it is immorral. and will not be born by the public!

  • CF

    In defense of banks… sort of….

    Lets compare ATM’s, debit card readers and money transaction networks with Dynamic Random Access Memory, or DRAM for short. If you are reading this you have DRAM in your PC or Mac. Back in the early 90’s I remember paying $700+ for a mere 20 Meg of memory. Today you can buy 2 Gig(!) of memory for about 40 bucks!!

    Why?

    Because in the early days of mass production of PC components it was very expensive to develop and deploy new DRAM technology. But as a result of mainstreaming of mass production and the payoff of the initial investment, (thanks to us early adopters), the cost of DRAM is a very small fraction of what it was at it’s introduction.

    As with electronic banking, the same was true. Big Bank Inc. had to invest in new servers, networks, ATM machines and card readers. So Big Bank Inc. charged merchants a fee to pay for this new infrastructure. Fair enough. BUT that was two decades ago. Like DRAM the system is already in place and long since been paid for and only now requires upgrades and maintenance. And the cost of operating the electronic transactions system if FAR less costly than old fashioned paper checks.

    Unlike manufacturers of DRAM who realized the only way to progress was to lower prices as a result of market conditions after their recovery of the cost of the initial investment, Big Bank Inc. is under no such constraints. Because he who holds the money holds the power. As in the same manner as drug dealers, (illegal or otherwise).

    I wonder. Where is the outrage over evil Big Bank Inc that there was over evil Big Tobacco? After all, didn’t Big Bank Inc get us hooked on card readers and is now bleeding us dry?

  • OTV Egypt

    Good, Will new fees for the use of debit cards prompt you to change your banking habits? | Today’s Question | Minnesota Public Radio.