New fee coming to a debit card near you

[Brentastic]

I don't get this, the banks don't make money when you withdraw. I know they would lose me as a customer if they did this, but I'm betting that a lot of the people who stay will just start withdrawing cash instead. When a person withdraws cash for purchases they generally take out more than they actually need and in turn that is less money being held by the bank. It seems to me that they would stand to lose revenue off of this deal rather than gain.

Because they are counting on the fact that most of us are so reliant upon our debit cards that we won't withdraw cash. And they're probably right. That's why it's really important that as many people as possible stop relying on the easibility of banks. I still use a bank but I'm getting close to the point of pulling out completely and doing everything in cash. It's a tough transition because we're all so used to direct deposit and debit cards but it's a planned scheme by the banks. They want us completely reliant on the easy use and easy transactions. Getting charged for too many transactions on savings accounts and monthly fees, wiring fees - it's all a crock of spit! They already make gobs of money from fractional reserve banking - getting charged extra for anything else is just ridiculous.

[SayItAintSoJoe]

Because they are counting on the fact that most of us are so reliant upon our debit cards that we won't withdraw cash. And they're probably right. That's why it's really important that as many people as possible stop relying on the easibility of banks. I still use a bank but I'm getting close to the point of pulling out completely and doing everything in cash. It's a tough transition because we're all so used to direct deposit and debit cards but it's a planned scheme by the banks. They want us completely reliant on the easy use and easy transactions. Getting charged for too many transactions on savings accounts and monthly fees, wiring fees - it's all a crock of spit! They already make gobs of money from fractional reserve banking - getting charged extra for anything else is just ridiculous.

 

 

Imagine if this fee would have been in place from day 1. I don't think debit cards would have ever taken off the way they have. Instead they wait till you're reliant on something before adding the fees. Them bastards!

[westvirginia]

Imagine if this fee would have been in place from day 1. I don't think debit cards would have ever taken off the way they have. Instead they wait till you're reliant on something before adding the fees. Them bastards!

 

Kinda like the mob with a "special introductory offer"

[Brentastic]

Imagine if this fee would have been in place from day 1. I don't think debit cards would have ever taken off the way they have. Instead they wait till you're reliant on something before adding the fees. Them bastards!

And unfortunately this is how all businesses work most of the time. I see it with restaurants who start off serving good quality food and then once they establish themselves, they start using cheaper ingredients. Netflix did this recently - after taking out blockbuster and becoming the industry leader, they upped their prices. Just one reason of many to hate money and big business.

[Chavez]

OK, westperchinia...

 

 

Noice.

[The Holy Roller]

I do not use a debit card unless it is absolutely necessary. Each pay period I get cash out from the bank (teller) to cover living costs like food, gas, ect.

 

After getting hit by ID theft, I severally limit my use of cards.

 

My vote. F'em and all their "fees" .

[CaP'N GRuNGe]

Stupid fee, but i'm guessing $3 a month to most consumers won't cause more than a few grumbles. I have used my debit card for everything for years. Hardly ever carry cash. And I love online bill pay through my checking account. I may write 4-5 checks a year. I did just get a couple of new credit cards as for some reason they are throwing money around to get you to sign up now. I picked up a Chase card that gave me $250 after my first transaction along with 5% cash back quarterly in different categories and 1% on everything else. I also picked up an AMEX card that has a $75 annual fee but it gave me $150 back right away and 6% off at supermarkets, 3% off at dept stores and gas stations, and 1% off everything else. I'l be transitioning at the the very least all my gas and groceries transactions to these cards. Might as well get that free money. My wife went on a business trip and charged her hotel to the 5% card so we are already up to $500 cash back in about a month.

[MikesVikes]

I'll start banking here if that happens.

[detlef]

I never use my debit card for any transactions other than getting money out of the ATM. I use my credit card for everything so I can get the reward cash and use someone else's money.

This. I avoid using any plastic at local businesses because I want to keep as much of that money in my community and don't want to stick my local brethren with the CC fee. However, if I'm at Home Depot or what not, and I'm using plastic, I may as well get the miles and just pay off the balance every month (which we've done for the longest time).

[Azazello1313]

The free market had developed for the instant use of debit/credit cards and had settled out so that the banks could absorb the cost in various ways. Well, the recent bill passed and capped the fees banks were allowed to charge each other. An article from USA Today about the issue. Just like rent control, price ceilings and other gov't interference in the free market, this crap doesn't happen in a vacuum. Now, because of this, there will be usage fees. ALL HAIL OBAMESSIAH!

 

Not a case of what they charged each other, but what they charged retailers. This was a hugh fight between two mighty lobbies - retailers and banks. A pox on both of them but trust you to make it Obama's fault.

 

meh, the law just changes how they can shift the costs around. makes it more necessary to ding the consumer directly, which of course everybody said would happen, but I don't really see how it's necessarily a good or bad thing on its face.

 

it's always seemed stupid to me that banks charge the retailer 5% if you push the credit button, and bupkiss if you push the debit button. when you compare it that way, I guess you can see why the banks feel like they're getting took. but hey, like others have pointed out, if I'm paying the same "price", and the bank is going to give me back 1-3% (in CC rewards) of that 5% they extorted from the retailer, then I am pushing credit every time.

 

wouldn't it be smart for retailers to give a ≤ 5% cash discount? it's surprising how few actually do...

[Azazello1313]

oh, and west perchinia

[detlef]

meh, the law just changes how they can shift the costs around. makes it more necessary to ding the consumer directly, which of course everybody said would happen, but I don't really see how it's necessarily a good or bad thing on its face.

 

it's always seemed stupid to me that banks charge the retailer 5% if you push the credit button, and bupkiss if you push the debit button. when you compare it that way, I guess you can see why the banks feel like they're getting took. but hey, like others have pointed out, if I'm paying the same "price", and the bank is going to give me back 1-3% (in CC rewards) of that 5% they extorted from the retailer, then I am pushing credit every time.

 

wouldn't it be smart for retailers to give a ≤ 5% cash discount? it's surprising how few actually do...

Few of us get dinged 5%, it's more like 2.5-3.5 assuming you've done any homework at all in terms of getting a good rate. So, then it becomes such a small discount that you actually run the risk actually offending people. At least in my business.

 

Not that it doesn't add up big time.

Edited August 17, 2011 by detlef

[Yukon Cornelius]

This. I avoid using any plastic at local businesses because I want to keep as much of that money in my community and don't want to stick my local brethren with the CC fee. However, if I'm at Home Depot or what not, and I'm using plastic, I may as well get the miles and just pay off the balance every month (which we've done for the longest time).

wurd...

[westvirginia]

meh, the law just changes how they can shift the costs around. makes it more necessary to ding the consumer directly, which of course everybody said would happen, but I don't really see how it's necessarily a good or bad thing on its face.

 

it's always seemed stupid to me that banks charge the retailer 5% if you push the credit button, and bupkiss if you push the debit button. when you compare it that way, I guess you can see why the banks feel like they're getting took. but hey, like others have pointed out, if I'm paying the same "price", and the bank is going to give me back 1-3% (in CC rewards) of that 5% they extorted from the retailer, then I am pushing credit every time.

 

wouldn't it be smart for retailers to give a ≤ 5% cash discount? it's surprising how few actually do...

 

There was a convenience store I used for about 5 years straight, and the guy would give me a 2% discount for cash. When you spend $50/week in gas and another $30 for a carton of cigs (this was a while back ) over a few years that'll add up.

[WaterMan]

Screw BOFA. They are now charging $12 a month for a "maintenance" fee.

[Brentastic]

Screw BOFA. They are now charging $12 a month for a "maintenance" fee.

Screw all of the banks.

[Ursa Majoris]

Screw all of the banks.

Pretty sure it's been the other way around for many years.

[rajncajn]

Screw BOFA. They are now charging $12 a month for a "maintenance" fee.

 

 

Screw all of the banks.

 

:runsnakedthroughthethreadscreaminganarchy:

[Big John]

:runsnakedthroughthethreadscreaminganarchy:

Now taz has hacked your account

[rajncajn]

Now taz has hacked your account

I'm a virtual Huddle melting pot.

[Big Country]

I'm a virtual Huddle melting pot.

 

 

That's a disturbing image I can now never get out of my brain.

[rajncajn]

That's a disturbing image I can now never get out of my brain.

You too will be assimilated. It is inevitable.

[Brentastic]

Pretty sure it's been the other way around for many years.

Yes. It. Has.

[i_am_the_swammi]

Seems Bank of America got the message:

 

CNNMoney.com

NEWS FLASH: Bank of America drops planned $5 debit card usage fee after widespread customer complaints.

 

Might be too late though, as many customers are said to be planning to take part in this:

 

Bank Transfer Day is November 5th - Are You Going to Move Your Money?

Gina Ragusa

October 24, 2011

 

Heralded as the day when "banking institutions will ALWAYS remember the 5th of November," Bank Transfer Day is powered by one woman's quest to say "no" to high banking fees and "yes" to credit unions.

 

Bank Transfer Day was initiated by small business owner, Kristen Christian who told KTLA Live that she was sick and tired of being beholden to ever-changing big bank fees for very little value.

 

"I was tired of paying outrageous fees to banks for a severe lack of services. I was tired of having my money access determined by a corporation and the final straw because I was tired of banks targeting the impoverished and working class."

 

Christian says that she decided to mark one day where consumers could send a message to large multi-national banks by moving their accounts from the bank to a credit union.

 

She chose November 5th because of its notoriety as being Guy Fawkes Day A day when an attack on the English Parliament building was thwarted.

 

The Movement Is Quickly Gaining Support

 

Amid the loud shouts from Occupy Wall Street, Christian says that she has no affiliation to the "Occupy" movement although her crusade is getting nods and support from that group.

 

She tells The Village Voice, "I've been in contact with (Occupy Wall Street) members from Portland, San Francisco, and Los Angeles, where I live... some of them have been taking it upon themselves to post on their Facebook pages and websites. But this is literally a private citizen who had enough. In terms of what you are going to accomplish with a sign, standing on the sidewalk -- you can't just sit in a public street until you get your way. This is taking direct action, saying OK, we've had enough. I think that's why we've garnered so most support."

 

Adding tremendous fuel to her efforts is Facebook where approximately 51,000 people have RSVP'd to this event in an effort to kick their bank to the curb.

 

Bank Transfer Day's Facebook mission statement says, "Together we can ensure that these banking institutions will ALWAYS remember the 5th of November!! If the 99% removes our funds from the major banking institutions to non-profit credit unions on or by this date, we will send a clear message to the 1% that conscious consumers won't support companies with unethical business practices."

 

Additionally, Facebook statistics report that 22,129 people have liked the event page and 16,1010 people are talking about it as of October 22.

 

Who is Going to Move Their Money?

 

Bank Transfer Day supporters are sounding off on Facebook with some saying,

 

"Noted on my calendar..One more (very) important thing to do..."

 

"I already belong to a credit union. Have for years! :-)"

 

"This week I'm voting with my bank accounts, later I'll be working to vote out the politician's who have failed to address Too Big To Fail while they take the banks money. We are the 99%, and we will not be ignored."

 

"We are leaving BofA too. Opened an account with BECU -- just waiting for all of our transfers to be complete and then it's DOWN with BofA!!"

 

The trail of comments is almost endless as more and more people are discovering ( or re-discovering) credit unions.

 

Matt Smith of Detroit, Michigan said that he's been long gone from banks. "I'm glad I'm not with a bank. I left those clowns years ago." Similarly, Berkeley California resident Bob Ferrer said that he had already left Bank of America, but parked his dough at a community bank.

 

"I guess I'm not participating," Ferrer says. "I already moved out of Bank of America and into a small, local bank. I'm not sure why I'd move on to a credit union. My bank is Mechanics Bank. The people are nice. Whenever I call their 800 number, I get a live person. I never have to talk to anyone through a sheet of bullet-proof glass again."

 

Jane McCreary of Wixom, Michigan may be joining the movement and says, "I'm seriously considering a move to one of our community credit unions. I've been checking around and can't believe the difference in fees and rates."

 

The Other Side of the Coin...

 

However not everyone has committed to leaving their bank and going to a credit union. For example, Milford, Michigan resident Greg Brainer feels that the issue goes much deeper than sending a message by transferring to a credit union.

 

"Our Bill of Rights and Constitution leave us powerless to change the situation on our own," Brainer explains. "We do not have the ability like we do on the state levels to have ballot proposals introduced by citizens or action groups on the federal level. Simply saying, 'vote out' your current representatives does not work with a system so large and out of control."

 

"So in reality any little protest or attempt at making a statement by things such as Bank Transfer Day is futile," Brainer adds.

 

At the same time, there are other consumers who plan to stand by their bank. Kathleen Richards of Plantation, Florida says that she isn't closing her Bank of America account and believes the products and services are well worth any nominal fee. "I'm sticking with Bank of America," Richards says. "I like the ability to pay my bills online and transfer money between accounts - services that may not be available with a credit union. I also like the convenience of having access to 'free' ATM's almost anywhere in the country."

 

Richards adds that she doesn't want to switch to a credit union or smaller bank and end up paying more for ATM fees because she would be forced to use an out of network ATMs due to lack of availability. "The $5 monthly debit card fee is fair when you consider that the banks incur an expense every time you swipe your debit card," Richards says. "In the past the banks shared the cost of processing the transaction with the merchant, but recently passed government regulation reduced the amount the merchant had to pay. The banks were then challenged with making up the difference. For me, an additional $5 a month is worth the benefits and services that Bank of America has to offer."

[SayItAintSoJoe]

Seems Bank of America got the message

 

The OWS Effect?