Comments on: Price Break on Debit Card Usage

By: Jeremy

Jeremy — Fri, 21 Apr 2006 20:27:15 +0000

This was one of the reasons (along with a host of others) that kept me from using a debit card. Even with the reduced/eliminated fees, I prefer credit cards (and I pay off the balance each month) for their other benefits – interest free float, purchase protection, security, etc…

By: G

Wed, 19 Apr 2006 01:46:46 +0000

Wachovia does not charge fees for using the visa check/debit card. Thanks for the great information about the carnival of personal finance. Your blog is very well written keep up the good work. I’ve added your site to my blog.

By: Karen

Karen — Tue, 18 Apr 2006 23:46:59 +0000

I’m a US ex-pat living in Australia. We’ve been here for 10 years now, and I find it interesting to see how the payments system differs down here. Most transactions here are done by debit card — you use your ATM card everywhere, with a pin. This type of payment was just starting to happen in the states when we left in 1995. In the US, I made most of my payments by paper check, and carried my checkbook with me everywhere. In Australia, few places accept checks. EFTPOS (Electronic Funds Transfer at Point of Sale) is the preferred method of payment in the shops. There are generally no fees for EFTPOS. I haven’t written a check in over a year.

Online bill paying was initially free here. A few months ago my bank started charging if you had more than 3 scheduled payments or direct transfers to other customers accounts per month. After less than six months they backed down on that.

By: OPhelia

OPhelia — Tue, 18 Apr 2006 18:41:14 +0000

Wow…guess I have been spolied by Citibank. I would be in big trouble if they ever started to charge for pin-based transactions. I use CVS and Stop N SHop’s cashback feature at least once a week as there is no convenient Citibank in my nabe.

By: VS

VS — Tue, 18 Apr 2006 17:55:24 +0000

Banks prefer if you use your debit card ( with MasterCard/Visa logo) by signing the receipts. The main reason is they get to stick higher fees to the retailier. Charging fee when you enter PIN is one of the way to “persuade” customer to sign the receipts. Here is link to my post.
http://cashorcharge.blogspot.c.....cards.html

By: nickel

nickel — Tue, 18 Apr 2006 15:52:02 +0000

I didn’t mention this in the original post, but I’m actually talking about US Bank.

By: Kim

Kim — Tue, 18 Apr 2006 15:34:12 +0000

Oh good. Maybe US Bank will follow suit. At least the “cash rewards” I get from using it like a Visa net me about $10 a year and it covers any PIN charges I get (usually at Costco – I don’t carry an Amex).

By: nickel

nickel — Tue, 18 Apr 2006 14:44:01 +0000

Interesting. Thanks for the link.

By: kurt

kurt — Tue, 18 Apr 2006 14:19:36 +0000

You say “How can they reasonably justify charging customers to use a technology that actually saves them money (as compared to either processing a paper check or running the charge through the Visa network)?”

Actually, as far as I know, the issuing bank receives the lionshare of the fees used when using an “offline network” such as Visa or Mastercard. Therefore, using the PIN code gives the bank less money than using it as a credit card. The following link contains similar information, though we both may be mistaken: http://www.pirg.org/consumer/banks/debit/fact.htm

By: Jonathan Radande

Jonathan Radande — Tue, 18 Apr 2006 13:32:26 +0000

Thats good news. My old local bank (Astoria Federal Savingss) used to charge for me to use my debit card, but i think they charged $1.00 for each debit transaction.

I ended up leaving for a nationwide bank, Bank of America.

By: nickel

nickel — Tue, 18 Apr 2006 13:02:09 +0000

Nope, they just said “We have good news for you!” and went on from there. I don’t think they really felt the need to explain themselves, as nobody will complain about them dropping a fee.

By: Nick

Nick — Tue, 18 Apr 2006 12:57:22 +0000

Did they at least provide an explanation for what made them decide to stop charging for it?