Debit cards: $50 spending limit coming?

Debit cards: $50 spending limit coming?

money.cnn.com

NEW YORK (CNNMoney) -- Declined! Your debit card may soon be denied for purchases greater than $100 -- or even as little as $50.

JPMorgan Chase, one of the nation's largest banks, is considering capping debit card transactions at either $50 or $100, according to a source with knowledge of the proposal.

(visit the link for the full news article)

The article might be better titled “The Empire Strikes Back” as your not so local and not so friendly neighborhood bankers decide to start getting ‘even’ for all the fees that they once charged being eliminated or reduced by the government.

It used to be that Banks could hardly cross state lines, let alone the Mississippi, and they pretty much had to make their money through being fortunate enough to wisely invest their depositor’s money and realizing a profit on that.

However since deregulation began back in the 80’s they went on a fee binge that netted them billions of dollars a year in profits for basically doing nothing at all except the services that they once provided when there was true competition in the industry to lure customers and depositors.

Now with just a few Mega Banks dominating the U.S. landscape they have become as predatory and dictatorial as any other Monopoly and it looks like they are going to flex their collective muscles over reductions in the bank interchange fees collected from merchants on debit card transactions.

It appears they are banking (no pun intended) on the threat of capping Debit Card Transaction Limits to frighten lawmakers into repealing some of the new laws, or customers into accepting new fees for using Debit Cards.

The only things more broken and dysfunctional than the American Government are the big corporations.

Where and when and how do we ever get sanity and control of our lives back?

Bluff or promise?

money.cnn.com
(visit the link for the full news article)

I dont see why they would decline purchases over 50 dollars, just use a credit card and get rewards points. The only people it will effect are the businesses you buy things from who could get away with it costing the business less to use debit. No one should be using debit theres no point, unless you do so to not make the banks richer.

Thankyou for bringing this to our attention, Id flag this twice if I could. Its a damn shame! One thing though, I have been under the impression that. Government and the corporations were one and the same. Or at least the perception given is not any different.

Damn, if this happens people will actually start carrying cash again.

Lets hope the fed has enough new bills printed and ready.

reply to post by ProtoplasmicTraveler


If this is true, then I am likely done with the American banking system.

As risky as some might claim it to be, foreign alternatives might be better.

I'll still pay my taxes and declare my cash, but at some point, conditions in this country make it a real disincentive to stay here.

No problem, I am moving to cash anyway. Capping debit card transactions will not happen because it would hurt the move to a cashless society which is desired by tptb.

reply to post by Fractured.Facade


Doubtful.
I have seen this mentioned on a car forum. The people getting fuel go to the $50 limit and then do a second charge. I would do the same thing myself. These days carrying more than $10-$20 can be hazardous to your health and your pocket book.

The companies doing this in the end are only hurting themselves as the fees add up for them and at this moment it is only inconvenient for the card holder.

Raist

Well in true reality, if you are one of those who desires to use the debit card for all transactions, because of ease of use. STOP! Its been widely speculated that the government has a database that stores information on every person, and there spending habits. It supposedly leaves a trace, you buy 10k rounds of ammo, they have it on record...same with foods, and anything else you can imagine. Yeah its convenient, but whats a few extra minutes to go to the atm or inside the bank, and have cash on you?

Now I dont have documented proof for you fellow readers, but I do have a summarized story that occurred to me.

Summarized version:

* Went to gun store in Nv.
* Bought 2k rounds of 7.63x 39 for my AK-47
* bought 2k rounds for my 9mm
* bought a 75 rd drum for the AK
* Tactical Vest was purchased as well
* along with extra high capacity mags


Not even one day later, a have an unmarked crown victoria parked across the street for 2 days while the occupants scoped my place out. Went to approach the car ( once ), and whom ever was in it sped off. Saw the car later, slightly up the street, so that increased the walking distance for me. Weird?....yes....every transaction since then is been by cash. And I havent seen that ol crown vic lately either.

reply to post by Whereweheaded


If you buy weapons or anything that you want to be as private as possible only pay cash and nothing else.

For all other transactions they can see what I eat or how often I fuel up with what octane percentage.

Anything that I feel needs to be kept private is done with cash.

Raist

Problem - Reaction - Solution in action perhaps?

"Those bad bankers will not let you access your money?..., well, maybe you might want to get this convenient bio-chip to solve your problem".

So what are people gonna do?

It's simple, they will pull out all of their money and go and set up accounts with local community banks. By doing this, the large banks are digging their own grave. Which is fine by me. Dig away bankers, dig away!

That's stupid. How can I order hard-to-find books on amazon if they do this?

Originally posted by Fractured.Facade
Damn, if this happens people will actually start carrying cash again.

Lets hope the fed has enough new bills printed and ready.

Actually the cash supply evenly divided works out to about 500.00 for every man woman and child in the U.S., fortunately every man woman and child's portion of the national debt is 78,000.00.

Imagine being on a date with a new totally hot babe who you really want to impress with an expensive dinner at a fancy restaurant, you go all out, top dollar for EVERYTHING, wine, all of it... The tab comes to over $300, no problem, you've got it covered with your debit card... no need to carry cash or checks.

Sir, your card has been declined for this purchase.

What?

Surely they've got this the wrong way round? They should be stopping people using a debit or credit card for transactions under $50!

Think how much faster you'd get served if everyone bought their morning paper and cup of coffee the old fashioned way. With money! I hate people using cards for minor purchases.

Mind, I my business is mostly cash based so I always have loads of real money on me .......

Originally posted by Fractured.Facade
Imagine being on a date with a new totally hot babe who you really want to impress with an expensive dinner at a fancy restaurant, you go all out, top dollar for EVERYTHING, wine, all of it... The tab comes to over $300, no problem, you've got it covered with your debit card... no need to carry cash or checks.

Sir, your card has been declined for this purchase.

What?

Lol, if you have a girl that requires a $300 restaurant bill, then my friend, a $50 cap on debit cards is the least of your problems. Instead of the banks digging for gold, you now have a woman AND banks digging in your pockets.

But if I found myself in that situation I would tell the waitress to charge $50 six times. If my date didn't put out afterwards then I would probably make her walk home!

Well this is strange and I guess I hadn't thought of this action being taken by these banks.
But I will say that it's not a big deal, hopefully people will just start using more credit unions.

I finally switched from Bank of Crap-erica in the summer to the local credit union and it feels much better. They're not setting any kind of bogus limits for me.

One thing I worry about would be the effect being more people getting more credit cards for larger purchases.
Of course this will kind of do a split with people who prefer cash or credit.

I prefer cash myself, unfortunately I use the debit more than I'd like thanks to direct deposit. But some people like the ease of a card, I can't stand the plastic.

This really just looks like a great indication that they're falling, falling, falling even further. The grip is slipping.

Originally posted by CastleMadeOfSand


But if I found myself in that situation I would tell the waitress to charge $50 five times. If my date didn't put out afterwards then I would probably make her walk home!

Five times? How would you pay the rest?

Originally posted by loam
reply to post by ProtoplasmicTraveler

 

If this is true, then I am likely done with the American banking system.

As risky as some might claim it to be, foreign alternatives might be better.

I'll still pay my taxes and declare my cash, but at some point, conditions in this country make it a real disincentive to stay here.

Sounds good, but Direct Deposit is a requirement for most normal jobs these days.

I usually pull all of my spending money out in cash and leave just the bill money in the bank, but it is almost impossible to entirely stop using the banking system.