We predicted that more major financial institutions would launch prepaid debit cards in response to the combination of increased regulation and a ballooning number of people who can’t get a credit or debit card. American Express …
debit cards
Billion-Dollar Swipe Fee Battle Inches Toward Senate
Senator Jon Tester, the Montana Democrat who kicked off a flurry of lobbying from retailers and bankers when he sponsored legislation to delay the implementation of a reform on debit interchange or “swipe” fees, took to the Senate floor along with his co-sponsors today to present a proposal.
The Mounting War Over 32 Cents
Why Your Checking Account Is Getting More Expensive
Long the workhorse of the financial mainstream, the checking account has undergone a radical evolution in recent months. Banks are shifting to the business model embraced by airlines, unbundling a product and adding fees on an a …
A Bank Heist, Committed by the Banks
Bank customers don’t like fees. Early on during the debate over reforming debit card overdraft programs—in which a customer was charged $30 or $35 for swiping a card that lacked enough funds to cover the bill—a survey was conducted to see how many people would prefer that such a transaction would be declined, so long as no fee was …
Fun Excerpt from Sen. Dick Durbin’s Letter to JPMorgan Chase CEO Jamie Dimon
“Banks like Chase charge consumers many fees for maintaining and accessing funds in their checking accounts – monthly fees, overdraft fees, failed payment fees, ATM withdrawal fees, failure to maintain a minimum balance fees, account closing fees, and more… There is no need for you to threaten your customers with higher fees when you …
Kardashian Kard Debacle: Exhibit A for Why You Should Be Wary of Celeb-Endorsed Products
The fee-laden prepaid debit card endorsed by the Kardashian sisters was universally panned as a ripoff and a joke when it came out in November. A consumer would have been hit with well over $100 in fees if using the card for a year. Now that the “Kard” has been killed off and the inevitable lawsuits have been filed, the situation is only …
Coming Soon to Debit Cards Near You: Annual Fees, Fewer Rewards
It may soon be time to rethink the automatic usage of a debit card, which unlike a credit card is tied to actual money held in a bank account, and which has been the preferred plastic of consumers eager to avoid annual fees and debt quickly piled up by swiping its cousin, the classic credit card.
The Banks’ Great Plastic Hope: Prepaid Debit Cards
Over the years, the primary way banks make money has shifted from collecting interest on loans to collecting fees from customers using their debit and credit cards and other bank products. As regulations make it more difficult to collect some fees—namely, debit card overdrafts—banks are growing more interested in prepaid debit cards.
Debit Card Overdraft Protection: How Many Customers Actually Opted In?
Bank customers used to be automatically enrolled in overdraft programs, which “protect” the customer by covering debit card expenses even if it exceeds the account balance. The fee for this protection—which only protects the customer from having his card rejected—is about $35 for each and every transaction. As of August 15, however, …
Recession-Era Words and Phrases: Are You a ‘Nevertiree’? Or Are You Among the ‘Accidentally Retired’?
The economic crisis has brought about a “new normal,” in which Americans are adjusting their expectations concerning work, investing, spending, and one’s “lifestyle.” The recession has also brought with it new words and phrases, like “new normal.”
New Debit Card, Credit Card Laws Will Save Consumers $5 Billion This Year
Holy moly! Thanks to restrictions put into place in 2009 and 2010 that limit how and when fees can be assessed on debit and credit card accounts, banks are expecting to collect $5 billion less in fees this year. For consumers, this should mean money in the bank—and what do you know, the money is actually yours, not the banks’.
