Credit Card News

Advertising Disclosure
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » News » Other » Consumer Alert: More Banks Pondering Cap on Debit Card Transactions

Consumer Alert: More Banks Pondering Cap on Debit Card Transactions

By
Add to Favorites:
Consumer Alert: More Banks Pondering Cap on Debit Card Transactions

How would you like to be forced into using a credit card over your debit card? Ok, so no one will be holding a gun to your head to make you use it. But if JPMorgan Chase makes a final decision to place a cap on debit card purchases, you will have to switch to your credit card or cash once you hit the imposed limit.

Under consideration is a $100 debit card limit because Chase would prefer its customers use credit cards since they are more profitable. Chase may have borrowed the idea from Bank of America, which has already floated a proposal for a similar cap for their debit cards. However, there is no doubt that many banks are considering the same thing since the Dodd-Frank Wall Street Reform and Consumer Protection Act passed last summer. The Durbin amendment to the legislation requires the Federal Reserve to impose new limits on what banks can charge retailers when customers swipe their debit cards. The Fed is due to finalize its plans by the end of April and banks will lose billions of dollars in revenue if proposed limitations go into effect.

What does the cap mean? At $100, this means that your card could be declined if you try to make a purchase over this amount. There is even a possibility that the bank might make the cap as low $50. This could definitely alter consumer behavior.

Chase and other banks warned that changes like this could take place if new rules concerning debit fees were put in place. Banks argue that the lost revenue will hurt their ability to provide the highest-quality service to customers and cover losses due to fraud..

Chase and other banks continue to battle it out with the Federal Reserve. Customers may just need to cross their fingers and hope that in the end all will be better for them. Maybe the Federal Reserve could start figuring out how to prevent such a debit card cap. Otherwise, customers will have to pull out the credit card, a pre-paid card, or the good old-fashioned greenbacks.

Add to Favorites:

Related News:

New Travel Rewards From MasterCard

By Dar Dowling, Posted: February 17, 2017

MasterCard is rolling out new travel benefits and rewards for MasterCard Platinum, World and World Elite credit cardholders in the Asia Pacific. Continue reading
Hilton Honors Upgrades Rewards

By Dar Dowling, Posted: February 16, 2017

Do you find yourself wishing for more rewards from Hilton Honors? If so, you are in luck. Continue reading
Americans Face Major Expenses

By Dar Dowling, Posted: February 15, 2017

If you have been hit with major expenses, whether they are medical, auto or tax-related, you are not alone, according to data released by JPMorgan Chase Institute. Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Unlimited 1.5x rewards on every purchase, every day. For every $1 you spend, you earn 1.5x Miles.
For Excellent, Good Credit
Get a dollar-for-dollar match of all the cash back you’ve earned at the end of your first year, automatically.
For Excellent, Good Credit
Guaranteed $500 Unsecured Credit Limit
For Bad Credit