Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Does anyone know if these fees apply to using your debit card as "debit" transaction only or if it is for either debit or credit transactions?
Whether or not you press the credit or debit button on the swipe machine doesn't make a difference to the bank -- it's a debit to your bank -- so it will qualify for the fee.
I'm not answering about credit cards, I'm answering about the DEBIT card. Whether you press the "debit" or "credit" button option, you are are charged if it is your DEBIT card. I am not home so I can't easily find where I read that, but I read it yesterday.
The article linked earlier in this thread states that the fee applies to both debit and credit transactions, when using a BoA debit card, but something doesn't add up here.
The wife of my former boss owned a small retail business, and when we were having a discussion one day about the increasing use of debit/credit cards in lieu of paper checks, he told me if a customer uses a debit card, and selects the "Credit" option, from the merchants standpoint, it doesn't matter whether the card was a debit card, or regular credit card, their fees (the merchant's) are the same. But if they choose "Debit", and enter their PIN, there was a difference to the merchant, and I think the fees were less, if I recall correctly. Of course, the funds come out of the customer's checking account, regardless of whether they choose "Debit" or "Credit", but maybe the fee difference why "Debit" is often the default option at many merchant's POS terminals.
A story posted at usatoday.com also raises questions about credit/debit fee differences:
"Starting Oct. 1, a regulation will cap the fees banks can collect from merchants whenever customers swipe their debit cards. Those fees generated $19 billion for banks in 2009, according to the Nilson Report, which tracks the payments industry.
There is no similar cap on fees that banks can collect from merchants when customers use their credit cards, however. That means banks may increasingly encourage customers to reach for their credit cards, reversing a trend toward debit card use in the past several years."
The article linked earlier in this thread states that the fee applies to both debit and credit transactions, when using a BoA debit card, but something doesn't add up here.
It does.
The wife of my former boss owned a small retail business, and when we were having a discussion one day about the increasing use of debit/credit cards in lieu of paper checks, he told me if a customer uses a debit card, and selects the "Credit" option, from the merchants standpoint, it doesn't matter whether the card was a debit card, or regular credit card, their fees (the merchant's) are the same. But if they choose "Debit", and enter their PIN, there was a difference to the merchant, and I think the fees were less, if I recall correctly. Of course, the funds come out of the customer's checking account, regardless of whether they choose "Debit" or "Credit", but maybe the fee difference why "Debit" is often the default option at many merchant's POS terminals.
Yes. That is correct.
Quote:
Originally Posted by ged_782
A story posted at usatoday.com also raises questions about credit/debit fee differences:
"Starting Oct. 1, a regulation will cap the fees banks can collect from merchants whenever customers swipe their debit cards. Those fees generated $19 billion for banks in 2009, according to the Nilson Report, which tracks the payments industry. There is no similar cap on fees that banks can collect from merchants when customers use their credit cards, however. That means banks may increasingly encourage customers to reach for their credit cards, reversing a trend toward debit card use in the past several years."
Also correct, and the merchants are not happy about that.
The fee's to make purchases and similar DEBIT services previously absorbed by the merchant
are now being shared with the BOA consumer's who do such by way of a flat fee
for the +/- 35cents per transaction it costs the Bank.
Credit card accounts are a whole other entity.
You can use a check card with either a debit or a credit option. Either transaction will cause the fee to be assessed. I don't think she was speaking of a credit card.
As a matter of principle, I will soon be pulling all of my money out and shutting down my BofA account. Destination: a local credit union. BofA can shove it as far as I am concerned.
I've always refused to have a debit card, so it won't affect me. Except for the ATM substitute aspect, or people who can't get a credit card and pay it off every month, it is worse. It amazes me how many people just adopted it because a bank told them 'here, new, shiny'.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
