Have a question? Contact Us!

» Visa and MasterCard to Raise Debit Fees for Small Purchases

Share this
Visa

Visa

As of Oct 1, 2011, new rules and regulations covering the fees that Visa and MasterCard charge merchants for processing each transaction go into effect. The new regulations reduce the debit fees from approximately .42 per transaction to approximately 0.21. This change has a huge effect on the profits a bank makes. Although it sounds quite small and insignificant when you multiply this fee times the millions of transactions daily, the amount is huge.

A recent estimate has actually shown that the actual cost to the bank is around 0.01 per transaction, so they are still making huge profits.

Bank of America announced recently that effective October 1, 2011; they would begin rolling out a fee to all of the customers, who use ATM/Debit Cards. They could still use the cards free of charge at any ATM machine, but if they used the cards for a purchase, they would incur a $5. monthly fee. This fee is not per use and it not charged per card, it is only if you use the card at least once during the month for a purchase but you can then use the card for as many purchases as you wish.

Other banks have also announced debit card usage fees, but Bank of America is the first to roll it out.

The new government program requires the Bank to notify each VISA and MasterCard Debit Card holder before they can enact the program, so the bank is notifying customers state by state, by sending them new terms and conditions notices, and somewhere in the fine print the bank is explaining the fee.

MasterCard

MasterCard

A recent interview with Presidential hopeful Newt Gingrich shows just how aloof our Politicians are to their foibles, when asked about this fee, he quipped, if the consumer doesn’t want to pay it, let them just find another bank, I am sure that not all banks will be charging the fee.

Instead of admitting that Congress worded the new act incorrectly or instead of attacking the bank for taking advantage of the same tax payers that bailed them out, he simply blows it off.

It is like he has no concept of what another $5 per month means to families, or the amount of time and cost involved in changing your business to a new bank.

Americans need to protest. Maybe they need to stop leaving their cash in the banks, withdraw their monthly budgets and stash it in their mattress. Stop their automatic deposited paychecks, which the banks promoted to the customer and to the employers. It seems that the banks have very short memories of promises made to customers. Now that they have the world carrying around debit cards, they want to charge for them. Where is their commitment to the public, to their customers and to the taxpayers?

  •  
  •  
  •  
  •  
  •  
  •  
  •  

Leave a Reply

Follow Us:

RSS
Follow by Email
Facebook
Facebook
Google+
Google+
http://firstcredit.net/visa-and-mastercard-to-raise-debit-fees-for-small-purchases-93171/">
SHARE