Debit Card Fees About to skyrocket

[eldondre]

Just when we've gotten used to paying for dollar hamburgers, supermarket DVDs and coffee-store drinks with Visa and MasterCard debit cards, the card networks are preparing to nearly triple their fees, "killing" prospects for expanded debit-card use, Janney Capital Markets analysts Thomas McCrohan and Leonard A. DeProspo tell clients in a report today.

Read more: Visa, MasterCard triple 'small-ticket' debit fees: report | PhillyDeals | 09/21/2011
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[phillyaggie]

don't use them anyway.

[BarryG]

Almost every debit card can be swiped as a credit card now anyway. Doesn't sound like those fees will be affected. What it will kill is stores like Ikea that offer a discount for using debit over credit.

[phillyaggie]

This is really the banks casting around, looking for ways to make more money. Most checking accounts now a days aren't free anymore, so they charge you even to park your money with them...off of which they are the ones making money by investing in other assets.

In the end, Americans have to get more careful about how they spend their money, more savvy I should say. Don't have debt!

[robot]

Almost every debit card can be swiped as a credit card now anyway. Doesn't sound like those fees will be affected. What it will kill is stores like Ikea that offer a discount for using debit over credit.

The article says "small-ticket" items, but of course makes no mention of what the price cutoff is. Based on the amount of stuff most people buy at a time at ikea, I don't see many transactions being affected by this.

What I don't understand is why a consumer would prefer to use a debit card versus a credit card. For me the rewards are much better on the credit card, and I like having the month grace period before I have to pay up. Plus no risk of overdraft and better fraud protection.

[phillyaggie]

The article says "small-ticket" items, but of course makes no mention of what the price cutoff is. Based on the amount of stuff most people buy at a time at ikea, I don't see many transactions being affected by this.

What I don't understand is why a consumer would prefer to use a debit card versus a credit card. For me the rewards are much better on the credit card, and I like having the month grace period before I have to pay up. Plus no risk of overdraft and better fraud protection.

some people don't qualify for much credit or any credit. or simply don't want to do credit card debt thing...although there is always that option of paying off the debt at the end of the month and don't incur any fees/charges. but how many of them do it?

[billy ross]

This is really the banks casting around, looking for ways to make more money. Most checking accounts now a days aren't free anymore, so they charge you even to park your money with them...off of which they are the ones making money by investing in other assets.

In the end, Americans have to get more careful about how they spend their money, more savvy I should say. Don't have debt!

There's nothing wrong with debt as long as its used to enhance productivity by more than the cost of the debt. I would say: "Don't use debt for personal expenses", or "Debt is acceptable when buying appreciating assets or cash flow."

[phillyaggie]

In the context of this thread, I should have said, "don't have credit card debt." I thought it was understood.