Thursday, March 17, 2011

Chase considers limit to debit card transactions

We predicted the end of free banking, and it's happening as banks scramble for ways to replace the billions in lost revenue brought about by changes in banking law.

Interchange fee limits being discussed mean that banks will make even less per transaction, according to Blake Eliss's story on's Money Page:

Joe Price, president of consumer banking for Bank of America (BAC, Fortune 500), said in an e-mailed statement that the lower fee wouldn't fairly compensate the bank for the infrastructure and services it provides to retailers.

And consumers would end up feeling the pain when Bank of America is forced to recoup costs "by increasing the cost of their everyday debit card transactions, limiting their payment choices, and impacting industry innovation," according to the email.

Aside from mulling over a limit on transaction amounts, Chase is already testing $3 monthly fees on debit cards and $15 fees on checking accounts in certain states. Additionally, the bank announced in November that it has stopped issuing debit rewards cards. Read the entire story here.

Directo paycards are not affected by this type of increase, and continue to be the best banking choice those who want an alternative to traditional banks' increasing fees. Directo plan options include several ways to save, including some that bundle several free ATM transactions per month, and for those far from ATMs, one that include several free point of sale transactions per month. Visit or call us at 866-365-6521 for information on how Directo paycards can cut your payroll costs and improve productivity.

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