Thread: TIRED OF BoA
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Old 11-18-2012, 16:36   #23
Join Date: Feb 2002
Posts: 57
Originally Posted by Drain You View Post
Oh yeah I forgot about that one!

I know Mastercard/Visa gets a big chunk of it but they are making $$$ every time you use your card.
That used to be true, but not anymore. You can thank Senator Dodd and Congressman Frank (Dodd-Frank Banking Bill) for that one. Under Dodd-Frank, the amount that banks earn when someone uses their debit card has been cut by almost half. Those fees were used to, among other things, subsidize small accounts so that people with small balances could have "free' checking. When that was taken away by Dodd-Frank, the banks started looking for ways to recoup that lost revenue. Hence no more "free" accounts for those that keep small balances. And on the flip side of that coin, where did that extra money go? I doubt that Wal Mart, K Mart, et. al., lowered their prices to reflect the fact that they are now paying the banks less to process their debit transactions. They have kept the cash. This was nothing more than an income transfer to retailers at the expense of banks simply because banks are 'evil" and Congress could feel good about reducing the profits of banks. It ended up hurting the very people that they were trying to help....those that keep small checking balances.
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