Limited Spending On Debit Cards In The Near Future?

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2010 Wall Street legislation slashes the amount of interchange fees banks can charge retailers every time a consumer uses a debit card.

The average fee is 44 cents. That doesn't sound like much, but it adds up to about 16 billion dollars a year.

But now - the Federal Reserve is looking to capping that fee at 12 cents- making banks like JP Morgan-Chase, consider capping debit card transactions to compensate.

Sam Lang who says he only pays with a debit card doesn't like the idea. "If I had to go to a store and limit what I was going to spend to 50 dollars I would have a lot less incentive to stimulate the local economy And they already have limits on the amount of cash that one can take out per day. So, it's almost limiting the amount you can spend in general."

CNN Money reports Bank of America is also considering making up for the lost change by increasing cost of consumers everyday debit card transactions.

To read the full article follow the link below:
http://money.cnn.com/2011/03/10/pf/debit_cards_limit/index.htm?hpt=T2



 
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