CHICAGO — Using your debit card on shopping trips could become more difficult.
Chase is considering a limit of $50 to $100 on debit-card purchases. The New York-based bank, owned by JPMorgan Chase & Co., and some other big lenders have begun instituting new fees and restrictions on checking and savings accounts.
The moves come in response to a federal crackdown on certain practices. One rule that could go into effect in July is a reduction in the charge that merchants pay to card issuers when customers make purchases with debit cards.
The Fed has proposed a rule that would cap what are called “debit-card interchange fees” at 12 cents a transaction, a reduction of about 70 percent from the average cost in 2009.
That change would take a bite of $1.3 billion annually from Chase’s fees, which also help cover losses from fraudulent transactions. If banks’ ability to recoup losses on, say, a $400 purchase is limited to 12 cents, then they’re more likely to consider capping purchases made with debit cards.
“The proposed rules give banks little incentive to authorize large debit transactions that will bring additional fraud risk but no additional revenue,” said Greg McBride, senior analyst at Bankrate.com. “New rules on debit-card swipe fees have the unintended consequence of making debit cards a more-expensive or less-applicable method of payment for many consumers.”
People who have sworn off credit, or can’t get credit, will resort to cash or checks if paying with debit cards isn’t an option, he said.
This is stupid.. The use of debit cards and how much one wants to spend with it is their choice. Consuming whatever you want for however much you want should be your personal choice. Let freedom ring!
ReplyDeleteMatt Ferrera
I can see where Chase is coming from. They have a lot of people to pay and they need a very large income to be able to afford all of their purchases. There are going to be losing a lot of money as it is so they are going to fight back their own ways. Us people can just use checking accounts, cash or credit then, I don't really find it that big of a deal. This personally, isn't that big of a deal to me.
ReplyDeleteEd Banderowicz
This is ridiculous. The whole point of a debit card is it is your money so you should be able to spend it freely. I use my debit card for gas, and if its capped at $50 I can't even buy a full tank of gas with these ridiculous gas prices.
ReplyDeleteI think they shouldn't do this but it could be hlepful if someone steals an identity and tries to use someones debit card. It would limit the amount of money someone would lose.
ReplyDeletePhil Gross
Rachel Lee
ReplyDeleteI dont think its a good idea to put a 50 dollar limit on debit cards beacuse there are things thta could coast more than 50, like going out to dinner, what if thats all you had was your debit card, and its 55 dollars, then the card becomes useless. They should rasie the limit to 100 or 150 and then it can be acceptable
I don't see the issue with making large purchases with debit cards. The money is taken directly from one's checking or savings account so unpaid bills at the end of the month are non-existent. If this proposal becomes a rule, more people will resort to using credit cards for large purchases, which in my opinion, opens the door for abusive shopping since nothing is paid "up front" like with the debit cards.
ReplyDeleteMatt P.
You should be able to spend your own money, i dont think there can be a restriction on that. However, i see the rationality behind this proposal, because people are spending what they don't have. I have no real opinion on this issue.
ReplyDeleteJC Pawlak
I think this is kind of stupid because i dont get why people can only spend $50-$100 on your debit card. If someone has something to buy that is more and very important, they can't buy it? This is just another way for these credit card companies to make more dough! IT'S A SCAM!
ReplyDeleteMIKEY SCHOSTOK
I don't agree with this at all. Debit card are people's own money being used with more conveinence than cash. If people don't have cash on them and have to make a large purchase they are going to have to use credit which they may not want to do becuase of fees and debt.
ReplyDeleteMichele DiNella
I think this is pretty rediculous. A debit card is something you use for bigger transactions and by limiting that too $50-$100 would make things alot harder. People would have to carry large amounts of cash which presents many different problems.
ReplyDelete-andrew stolzer
It is really stupid how they are limiting the amount of money we are allowed to spend. How are we supposed to purchases items that we want? I really don't to get a credit card. This just irritates me.
ReplyDelete- Alex Kramer
This bill is rediculous, cause women spend over $100 dollars on shopping sprees. So it should be bumped up to around a couple hundred. but thinking on the other side of the fence this bill might keep people from over spending so it could keep people from going into debt.
ReplyDeletefrom michael patrone on ice
ReplyDeleteI think that people should be able to use their debit cards for purchases more than 50 or 100 dollars. While maybe a cap on the spending amount would be a good idea, this is too low and very restricting. I know that if I had to buy something that was more than $100, I would rather use my debit card. I would not feel comfortable carrying around that much cash, so my debit card makes it easy.
ReplyDeleteAmy Drangines
Debit cards are used so you don't have to use cash, limited the spending amount would just defeat the purpose of this.
ReplyDelete-Matt Clancy
I think it is stupid putting a cap on debit card spending. Its our money so we should be able to spend as much of it as we want but people are spending money that they dont have so i can see why people would think this is a good idea.
ReplyDeleteJack Doyle
If people have sufficient funds in their account they should be allowed to spend however much of it they want in one purchace. Many items i buy with my debit card are more expensive than $50 dollars and it would be a huge inconvenience.
ReplyDeleteLaura Herchenbach
I understand what they are trying to do but i think it's stupid. They are reducing the charge on transactions but also reducing the amount you can spend at one time. This causes people to have to make more transactions defeating the purpose of lowering the cost. If it's your money you should be able to do what you want with it.
ReplyDeleteLuke Zizzo
This is not a smart idea. It would make sense to limit the amounts of money on a credit card but a debit card comes straight from your account. Using a debit card is basically the same thing as using cash. More people would end up using credit cards which would end up putting more people in debt if they dont pay those. No one wants to carry that much cash around with them. It's not safe.
ReplyDeleteEmily Carton
I think it would be dumb to put a limit on a debit card. Too many people use them. I also dont care because I dont have one. If it does happen people should just use cash.
ReplyDeleteTommy Miller
I think that this legislation is ludicrous. Why would they limit the amount people can spend on debit cards? If they do, people will use them a lot less, if not completely stop using them. I think it's a really low way for the government to stop debit card use. I think they should keep it because if it it cut out, the government will end up loosing money, both now and in the future.
ReplyDeleteAll chase is doing is trying to cut costs. I actually think it is a good idea. This will help people who get their credit card stolen get thier money back.
ReplyDeleteThis is so stupid!!! i don't understand why they are even doing this. 50$ that is crazy! no one is going to agree with this! the reason people use a debit card is because they do not have the cash on them. who is going to carry around that much cash cause they cant use the debit card any more.
ReplyDeleteSam Gallagher
^^^^^ that comment is jimmy ryan's
ReplyDeleteI do not agree with Chase's reasoning. They are doing people a service allowing them to use debit cards and they are spending their own money. Chase is just trying to cut costs and make more money. Just let people spend their money how they want.
ReplyDeleteTyler $ullivan
I feel like its a good way to make people use cash more which will lead to less debt. However, people will start using credit cards which can be just as scary- if not even more terrifying.
ReplyDelete- Jax Sirotiak
This is crazy. Banks make so much profit, and are quite possibly to blame for the global economy. The charges that we pay for their services are ridiculous and unjustified. Banking is pretty much free in England and so it was a complete shock to see the charges imposed on me for being as reckless as actually trying to spend my own money.
ReplyDeleteThe Government need to get the banking industry in check. Everyone else is cutting back and making sacrifices while the fat cat bankers are still receiving big bonuses, foreclosing on people houses and generally punishing us for having sensible fiscal habits.
I'm going to bury my money under a tree - it will be cheaper!
This is ridiculous. The whole point of a debit card is it is your money so you should be able to spend it freely. I use my debit card for gas, and if its capped at $50 I can't even buy a full tank of gas with these ridiculous gas prices.
ReplyDelete-Brigitte Hartnett