Thread: TIRED OF BoA
View Single Post
Old 11-18-2012, 17:31   #24
Senior Member
harlenm's Avatar
Join Date: Jul 1999
Location: CT
Posts: 12,904
Originally Posted by bogeyman View Post
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.
The amount that retailers pay on credit card transactions didn't change under these law changes. We still pay basically the same amount(% for credit, fixed amount for debit) as we always have. Besides, our prices are not based on the amount of fees we pay, its based on the cost of the product, the freight charges, and the price the competition charges.

posted using Outdoor Hub Campfire
harlenm is offline   Reply With Quote