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genevieve
07-05-2011, 05:46 PM
I know this subject has come up before, but I saw another article about debit cards this morning

http://seattletimes.nwsource.com/html/businesstechnology/2015452507_pfdebitcards03.html

As banks deal with the new rules restricting the fees they can assess to businesses that accept debit cards, and to users who overdraw their accounts through debit card use, there are likely to be new fees to all just for the privilege of using debit cards.

Buzz
07-05-2011, 07:29 PM
They are expensive enough as it is.

Satellitegirl
07-05-2011, 07:50 PM
I'll have no problem going and getting out cash, then.

PrincessLeppard
07-05-2011, 11:12 PM
I belong to a credit union after having brief, but terrible, experiences with Bank of America and Wells Fargo. Not surprised those are two of the leaders in price gouging consumers...

rfisher
07-05-2011, 11:19 PM
I'll have no problem going and getting out cash, then.

Sigh, I suppose I will have to as well. I use BOA and my home bank is out of state. It's just been convenient to keep several different accounts with them. The downside is there are no ATM's to get cash. I guess the alternative is to start using a credit card for those debit card purchases and just pay it off each month. I have a couple with zero balances which would work. Sigh, that debit card has been really convenient.

Aussie Willy
07-05-2011, 11:37 PM
Not sure what happens in other parts of the world, but with my bank, I pay a monthly fee of $3 to have a debit card, but if I use the credit function when doing transactions I pay no fees on the individual transactions. But if I used the Savings function, I would pay fees.

The only problem with using the credit function is the charges don't show up on my bank account for a couple of days.

Japanfan
07-05-2011, 11:51 PM
IIRC my bank fee allows for unlimited use of my debit card. And businesses pay to take debit as well. Some require customers to pay a minimum charge to use debit cards and banks charge high interest on lines of credit, so benefit from overdrawn account.

Not raising the fees for debit cards/introducing new fees is of benefit to businesses because if people decide to use cash more often, it is likely that they would spend less money - cash tends to run out and using it may cause people to be more aware of how much they are spending.

OTOH, I have encountered one troubling debit card scenario. These were restaurants which didn't take debit, only cash or credit. Customers had to use a fee-charging machine if they wanted to get cash ($2.00 or $3.00 per transaction).

I saw this a clever ploy to ensure that customers used credit or paid extra $$ if they couldn't. If this state of affairs becomes the norm, I would always make sure to carry cash if I didn't plan to use

genevieve
07-06-2011, 12:27 AM
in the US, there is currently no fee to customers to use debit cards - although from the article it looks like perhaps some banks have already started. And pretty much any business that takes credit cards will take debit cards, with no fee to the customer (although some businesses require a minimum charge - but still, no difference between credit and debit cards).

I think it's interesting to see that perhaps US consumers have been enjoying a 'free ride' on a service that people in other countries are used to paying for. But when debit cards were made widely available in the mid-'90s there was a HUGE push to get people to use them for everything. For consumers the advantage was ease of access to one's money without having to carry cash (I know many people who never, ever have cash on them anymore), and for businesses there was the increase in business, with the reduction in risk that was associated with accepting personal checks. I think if these fees to consumers had been introduced closer to when debit cards were made available, debit card use would not have taken off the way it did here - but now that it's so ingrained in the culture I bet many people will accept the fees and keep using them.

For years I used debit cards for everything because I was trying to rein in debt and would only use credit cards for expensive emergencies I knew would take a long time to pay off - and I needed to know that I was only making purchases that I already had the cash to cover. It's still relatively new to me to use my credit card for everyday major purchases and then transfer the cash right away. It makes me nervous to make that my main form of payment might end up being my credit card. From where I stand now I'd say I'll end up using more cash for things...but who knows.

Really
07-06-2011, 04:05 AM
I've never paid a fee to use my debit cards in Canada. I have one for a major bank, and one for a credit union. I've paid fees to use ATM's that didn't belong to my bank(s), but in those instances, I usually make sure I take out enough cash that I won't need to pay the fee again anytime soon.

vesperholly
07-06-2011, 04:14 AM
What about using your debit card as a credit card? Mine has a Mastercard logo. I use my debit card exclusively (trying to pay down CC debt), and I almost always sign instead of enter my PIN. I only use it as debit when I need to get cash in amounts other than $20, or when there isn't a close bank.

mpal2
07-06-2011, 04:20 AM
What about using your debit card as a credit card? Mine has a Mastercard logo.

That will usually work but not all the time. I can usually use my debit card as a credit card but one store screws me over. They already know it's a debit card and won't even give me the option of treating it like a credit card.

BigB08822
07-06-2011, 04:29 AM
I would pay a small fee but it would have to be quite small. I wouldn't have a big issue if it was $30 and an entire year is covered. Anything more than that and I will just go to cash and use my credit card for emergencies and then pay it off right away. I also don't want to be charged monthly, I'd prefer one bigger payment and be done with it for the year.

KikiSashaFan
07-07-2011, 05:48 PM
I've never paid a fee to use my debit cards in Canada. I have one for a major bank, and one for a credit union. I've paid fees to use ATM's that didn't belong to my bank(s), but in those instances, I usually make sure I take out enough cash that I won't need to pay the fee again anytime soon.

Same here. I can use my debit card in stores as much as I want for free. When it comes to ATMs that aren't RBC, my banking plan will give me three per month for free, and after that standard fees apply, but I don't think I've ever gone over. I hardly ever carry cash, I use my debit card for everything.

rjblue
07-07-2011, 06:38 PM
The Canadian Interac system is another example of our banking system working in a much better way for the consumers. Using our bank cards is so universally accepted here that Canadians are the world leaders in percentage of our purchases done with debit cards. The Interac system is PIN based so all merchants have a keypad. Our bank cards have never worked with a signature.

Really
07-08-2011, 01:03 AM
Our major bank debit card doesn't work in the US, but my credit union one does, and so does my husband's from his non-big-5 bank. I think they're both in the Cirrus network. Anyways, we were in a little store near the campground last night, and hubby wanted to pay with his debit card. The clerk asked him for his PIN number, because the keypad wasn't in a convenient place. He said that he would walk around to put it in himself; he never gives out his PIN. We were both rather stunned by that.

Our debit cards up here are not tied to any credit cards; they are strictly tied to bank accounts. No credit card logos of any kind on our debit cards, just that of the issuing bank/financial institution.