Comments on: Debit cards are a cash cow for banks

By: Bargain Babe » Cool video about fighting bank fees

Bargain Babe » Cool video about fighting bank fees — Fri, 25 Sep 2009 15:16:28 +0000

[...] Debit cards are a cash cow for banks [...]

By: Bargain Babe » Banks agree to lower/eliminate debit card fees

Bargain Babe » Banks agree to lower/eliminate debit card fees — Thu, 24 Sep 2009 19:23:05 +0000

[...] my post about debit cards being a cash cow for banks? Well the NY Times story that inspired the post caused major change. The paper reports [...]

By: Banks agree to lower/eliminate debit card fees | Save and Stay Cool

Banks agree to lower/eliminate debit card fees | Save and Stay Cool — Wed, 23 Sep 2009 18:16:21 +0000

[...] my post about debit cards being a cash cow for banks? Well the NY Times story that inspired the post caused major change. The paper reports [...]

By: Linda

Linda — Sat, 12 Sep 2009 18:45:41 +0000

I never use my debit card, ever. What do I do you ask, I use CASH. I know exactly what I have to spend in my wallet, what a novel concept. Does it work? Heck yeah, no cash no purchase. In these tough times why pay the banks overdraft charges, or late fee’s. Take control of your money!

By: Registered Users | YellowZIP - Shop, Connect and Save!

Registered Users | YellowZIP - Shop, Connect and Save! — Fri, 11 Sep 2009 19:07:32 +0000

[...] And ever since this NY Times article about debit cards hit the newsstands, there’s been a lot of talk about debit cards and their secret downsides – I really enjoyed Not Made of Money’s blog about protecting yourself when you use a debit card, Five Cent Nickel’s blog, The Dark Side of Debit Cards, and Bargain Babe’s analysis of how debit cards are designed to make banks money. [...]

By: Melissa

Melissa — Thu, 10 Sep 2009 22:48:56 +0000

This is an interesting topic since England has been dealing with this issue within their banking system for the last two years. Thousands of people made claims against their banks for these very illegitimately high overdraft fees. I believe the issue is still held up in the court system, but the hope was that new government regulations would be enacted to prevent banks from profiteering from these “unlawful” charges.

England differs from the US in that banks in England allow most of their patrons an “authorized overdraft” which in a way can be alikened to a “personal line of credit”. This gives people that little extra space if they happen to buy a coffee that sets their balance under zero without having to pay $35 for every charge that is allowed to go through when your balance is in the red.

By: Donna Freedman

Donna Freedman — Thu, 10 Sep 2009 17:02:37 +0000

Part of me wants to slap the bankers. Part of me wants to shake people and yell, “Check your balance before you buy a #!$@ coffee!”
Seriously: Someone in the story overdrafted because, among other things, he spent $4 and change on a coffee. Couldn’t people, um, keep better track of what they actually HAVE in the account — including whether or not that birthday check from Grandma has cleared yet — rather than assume it’s OK and wind up paying $39 and change for that coffee? Just a thought.
Debit cards won’t “help” us do anything. It’s up to us to be aware of what we actually have RIGHT NOW and spend within that limit.

By: May2

May2 — Thu, 10 Sep 2009 15:05:29 +0000

What a rip off! I thought debit cards would help me spend less, not more.
Banks haven’t changed at all, have they?

By: Jenni Porter

Jenni Porter — Wed, 09 Sep 2009 19:32:19 +0000

For years, to protect against overdraft, I have “fudged” in my checkbook and enter in $500 fewer dollars than I’m actually entering in (so, say, my check was $1,500, I’d enter in $1000 only). Even though I remember that I did that, there’s something really powerful about seeing the “bottom line” of where the money went. Before I did this, I was a serial overdrafter! No longer!