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Kiss free checking goodbye and watch fees for things like bounced checks and stop payments to hit $50.
The government has no business setting prices -in any industry.
You are correct. But it is becoming more and more prevalent.
Government controlled pricing eliminates competition and forces market imbalance. In many cases it takes products off the market that some segments of the population (usually the poor) need.
It seems that this issue, like so many others ... has "consumers" cheering something without understanding what they are cheering.
The major clue that is apparently being missed here is "proposal by the Federal Reserve". Let me translate ..... not good for the little guy ... regardless of who that little guy is.
Now that we've established that ... let's look at a comment Big Ben had to say: “It’s going to affect the revenues of the small issuers,” Ben S. Bernanke, the chairman of the Federal Reserve, told a Senate committee last month, “and it could result in some smaller banks being less profitable or even failing.”
Now this is a little larger than a clue. Forget the "retailer argument" for a second ... and lets just look at this "not good for the smaller banks" element. This is another step in the "consolidation" process of the Big Banks swallowing up little banks and credit unions ... ultimately, not good for the average consumer, as banking competition disappears and the Big Banks take over (we're right back to the easy formula of common sense .. if the FED is for it ... YOU should be against it).
Now let's look at the "good for the retailer" angle. A reduction in the fees a retailer has to pay seems like a win for the retailers, and the not so bright consumer in turn thinks it's good for them too.
Now, lets look at who are those "winning" retailers are that will actually see these big bonuses? WalMArt ... Home Depot ... massive corporate chains that process the majority of debit transactions (the same ones that sell you the junk made in China) .... not the Mom and Pop convenience store. So again ... the benefit goes to the Big Guys ..... WalMart will reap big dividends at the expense of all of the little banks that will get swallowed up by the Big Banks.
The consumer will ultimately be the one that gets screwed here ... and the FED and Big Banks know this ... and they are laughing at you! They throw you a bone, claiming a 10 Billion reduction in retail fees each year, as if the consumer is going to see a penny of it. You won't. It goes in the pocket of "retailers" not yours. And this retailer fee has nothing to do with the $2.00 -$4.00 transaction fee that that the bank charges you for a ATM transaction ... that .42 retailer fee is a separate item. So, as the little banks fail, and are swallowed up by the Big Banks ... those $2.00 -$4.00 transaction fees charged to your bank account will also be consolidated into the hands of those Big Banks. Another win for the Big Banks, now that they've swallowed up the failing little banks.
There is very little benefit to the mom and pop convenience store which may save $300 per month (not enough to make any significant difference in their bottom line), while WalMart saves 200 Million a month in those retail transaction fees. Again ... the Big Guy wins.
So can you begin to see what is happening? Open your eyes ... that's a good start. The Banks that are fussing about this are the little banks, because they know this is just another power grab for Big Banks and Big Corporations. The Big Banks may join in on the fussing, but it's a fraud .. the Big Banks know they are ultimately going to benefit big time, so their pretend opposition is false opposition so that the average drooling imbecile consumer supports the takeover. When you cheer this, you are really cheering the expansion of the rope factory that is creating the rope to hang you with.
This formula has been used so many times, it's sickening that people keep swallowing this bait hook, line and sinker. They did it to you with Health Care Reform ... oh ... the insurance companies are fighting it .. so it must be good. (the reality is, the insurance companies wrote the friggin legislation!!)
People need to start thinking again ... and it's not hard. You don't need to understand the complexities of this ... you just need to get a clue that if the Federal Reserve proposes it ... it ain't good for you ... that's all you need to remember.
I guess I rep you too much- can't do it for this post but thank you for shining the light of truth on yet another issue.
When debit first was started, the charge was 15 cents and the banks made money on that charge. The 44 cent charge's purpose was to inflate the bank's profit into obscene territory.
The unspoken benefit to the merchant and the banks is that debt has essentially no fraud, since a PIN is required.
Next they need to make Over limit usury at 30.00 a pop.
Bank of Amerika rapes and pillages consumers. They were huge in the HELOC scams as well
bankofamericasucks.com
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