When a consumer buys something with a credit card, the credit card company gets a cut of the transaction. Stores figure that cut into their pricing system, figuring that when they sell an item for $100, they don’t get all of that $100 if the purchaser uses plastic. If it’s a cash purchase, on the other hand, the store gets all of that $100.
Last week, Bank of America and Chase announced some supposedly customer-friendly changes to the way they assessed debit card overdraft fees. The changes did not impress anyone.
Debit cards have been presented as the safer alternative to credit cards. A credit card is something of a temporary loan operation, allowing you to buy things with money you may or may not have, creating a situation in which it’s easy to get into debt. A debit card, by contrast, allows you to buy things using the funds sitting in your …
The recession has turned the U.S. into a nation of savers. After years of spending like it was a job—and in some ways it was a job to buy stuff and keep the economy pumping along—we are finally saving some money. The national savings rate was around 7 percent recently. But now that we’re saving, interest rates in a typical bank …
Unless you’ve been locked in a vault, you know that the banking industry isn’t doing so hot. Faced with declining revenues, banks are creating or increasing all sorts of fees on its customers.
A new slew of advertising campaigns clears things up the misunderstanding. (And that Bernie Madoff guy? What a prankster!)