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Banks considering debit card purchase limit $50 - $100

Discussion in 'BlackHat Lounge' started by GreenGoblin, Mar 11, 2011.

  1. GreenGoblin

    GreenGoblin BANNED BANNED

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    http://money.cnn.com/2011/03/10/pf/debit_cards_limit/index.htm?hpt=T2

    sounds like pure foolishness, but there's the report. They make the system then find out it's f^%$ up then wanna change it. Where do they find these people at?
     
  2. Monrox

    Monrox Power Member

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    This has an unexpected potential to turn into a circus :)
    Govts accross the planet try to reduce cash payments in order to easily track the money flow. Capping computerized payments goes against this agenda so we may soon be seeing some forced bendovers from JP, BoA, and the likes.
     
  3. scott8610

    scott8610 Junior Member Premium Member

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    Good thing I pay with a paypal debit card :)
     
  4. Black Hat Expert

    Black Hat Expert BANNED BANNED

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    but it will affect the banks credit system i think
     
  5. lumio

    lumio Newbie

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    Even if they go through with this plan, I don't think it will last long. The sheer volume of debit card purchases over $100 will cause this plan to fail.

    People have the option to take their business to smaller banks and credit unions which don't observe this spending cap since their margins are not as dependent on interchange fees. Businesses that pay for expenses via debit card will follow suit when these spending caps become a problem. Imagine trying to purchase supplies for a job and having your transaction declined even though you have enough money in the bank. How much longer would you be that bank's customer?

    And that's all before we consider the amount of lobbying that major retailers like Wal Mart, Target, Amazon, and others will do when they are faced with losing billions of dollars in revenue. They sure as hell won't allow that.
     
  6. SaraJ

    SaraJ Junior Member

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    I can't imagine this being a normal practice.

    Think of weekly things like grocery shopping where many go over these limits.

    Think of going out on a date or a meal with a few friends where you end up paying.

    WOW... that would mess things up.

    <gets out her 7 year old check book... here we go!
     
  7. agente808

    agente808 Regular Member

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    I suspect that they are just going to use the uproar to justify new fees which consumers would have protested - now the banks' clients will be happy to pay a monthly fee for "unlimited debit withdrawls"
     
  8. Autumn

    Autumn Elite Member

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    It's a load of scaremongering bullshit. The whole direction is towards a cashless society so they will fix the bank transfer fees before they cap debit cards.

    Here in New Zealand, which was one of the early adopters / test beds for EFTPOS, a large proportion of the population only ever uses debit cards and never uses cash. It's the way of the future.
     
  9. Mr Allante

    Mr Allante Registered Member

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    That's Congress for you.... unintended consequences
     
  10. Mick Swagger

    Mick Swagger Newbie

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    This is ridiculously unreasonable. I don't believe it.
     
  11. zellow1006

    zellow1006 Junior Member

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    I don't get how putting a limit on debit card purchases fixes the problem. So the banks get 44 cents a transaction, and now they will only get 12 cents a transaction, and because of this they are putting a cap on debit card purchases?

    If this is true, then why are they doing it? It seems like the smart thing would be to increase debit card purchases to increase the amount of interchange fees, so why are they decreasing and putting caps?

    can anyone explain?
     
  12. RebelMaster

    RebelMaster Junior Member

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    Maybe ... But your paypal debit card (thru your PP account) is tied to a "bank". Depends on whether that particular bank goes this route or not.

    Have to wait and see how this all pans out. ;)


    RM
     
  13. RebelMaster

    RebelMaster Junior Member

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    I'd suggest reading the article OP posted for your answer but here's an excerpt ...

    The banks are trying to get around the new bill any way they can so they can charge other fees that aren't covered in new law. Don't know which I dislike more ... bankers OR lawyers! LOL

    RM
     
  14. Monrox

    Monrox Power Member

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    Great excuse. We have to pay for them not being able to get their s4it straight. I am going to pay less for chops to help offset my losses from charring mishaps... oh wait, it's only legal if you're a bank.

    Pay in cash and hoard gold is the only way out. (and don't live on credit of course). For online there are enough fee-free providers.
     
  15. Chronos

    Chronos Junior Member

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    The problem with this plan is, if a few big banks decide to cap debit card purchases the consumers will just move to a bank that doesn't have a limit.

    Not really a problem, but just an example of how free trade/capitalism functions.