Comments on: Decoupled Debit Cards http://masteryourcard.com/blog/2008/05/02/decoupled-debit-cards/ The best Credit Card Debt Blog online Thu, 02 Feb 2012 13:31:13 +1100 http://wordpress.org/?v=abc hourly 1 By: mark http://masteryourcard.com/blog/2008/05/02/decoupled-debit-cards/comment-page-1/#comment-51545 mark Thu, 22 Oct 2009 20:39:02 +0000 http://masteryourcard.com/blog/2008/05/02/decoupled-debit-cards/#comment-51545 assuming congress limits these fees (interchange) and knowing that credit unions rely on this fee (interchange) to keep the lights on and help paid (margin on interest rates does not) the recourse will be to raise rates, reduce services, limit the availability of credit, or cease to exist. this will only hurt the people that congress is trying to help. consumers may find that the alternative to banks may not be there to help them. assuming congress limits these fees (interchange) and knowing that credit unions rely on this fee (interchange) to keep the lights on and help paid (margin on interest rates does not) the recourse will be to raise rates, reduce services, limit the availability of credit, or cease to exist. this will only hurt the people that congress is trying to help. consumers may find that the alternative to banks may not be there to help them.

]]> By: Kristy http://masteryourcard.com/blog/2008/05/02/decoupled-debit-cards/comment-page-1/#comment-2023 Kristy Thu, 15 May 2008 03:46:56 +0000 http://masteryourcard.com/blog/2008/05/02/decoupled-debit-cards/#comment-2023 Good point splitscreen; however I don't see the price going down on these interchange fees, especially if the Fed gets their way or the Credit Cardholder's Bill of Rights is passed. That's a serious loss of income for credit card companies and I'd almost be willing to wager that they'll be increasing the rate on interchange fees a little bit. But, only time will tell. Good point splitscreen; however I don’t see the price going down on these interchange fees, especially if the Fed gets their way or the Credit Cardholder’s Bill of Rights is passed. That’s a serious loss of income for credit card companies and I’d almost be willing to wager that they’ll be increasing the rate on interchange fees a little bit. But, only time will tell.

]]> By: splitscreen http://masteryourcard.com/blog/2008/05/02/decoupled-debit-cards/comment-page-1/#comment-1973 splitscreen Tue, 13 May 2008 15:32:44 +0000 http://masteryourcard.com/blog/2008/05/02/decoupled-debit-cards/#comment-1973 You're right about consumers rarely seeing these hidden fees. The only time they do see them they probably have no idea - like when small businesses have something like a $10 minimum purchase for cards so that they ensure a profit off the sale because of the interchange fees. Also, a lot of businesses have to raise prices because of the fees - which is passing them off onto consumers, but consumers don't directly see those either. I've seen a fair amount of news about how gas stations are even offering discounts to people who pay with cash because the fees are so high these days. It really will be interesting to see where this all leads - I mean you'd think these fees would be going down since the price to make electronic transactions has actually been going down these days! You’re right about consumers rarely seeing these hidden fees. The only time they do see them they probably have no idea – like when small businesses have something like a $10 minimum purchase for cards so that they ensure a profit off the sale because of the interchange fees. Also, a lot of businesses have to raise prices because of the fees – which is passing them off onto consumers, but consumers don’t directly see those either. I’ve seen a fair amount of news about how gas stations are even offering discounts to people who pay with cash because the fees are so high these days. It really will be interesting to see where this all leads – I mean you’d think these fees would be going down since the price to make electronic transactions has actually been going down these days!

]]> By: Kristy http://masteryourcard.com/blog/2008/05/02/decoupled-debit-cards/comment-page-1/#comment-1868 Kristy Sat, 10 May 2008 05:09:00 +0000 http://masteryourcard.com/blog/2008/05/02/decoupled-debit-cards/#comment-1868 Well, interchange fees don't see the light of day in most cases because consumer's very rarely see them. I think the only way the consumer sees them is if they pay their taxes with their credit card...which the IRS worked out special with credit card companies. But, you're absolutely right in that if these decoupled cards take off, the credit card industry as a whole will suffer with the loss of income - not to mention banks and credit unions. It will be very interesting to see where this all leads! Well, interchange fees don’t see the light of day in most cases because consumer’s very rarely see them. I think the only way the consumer sees them is if they pay their taxes with their credit card…which the IRS worked out special with credit card companies. But, you’re absolutely right in that if these decoupled cards take off, the credit card industry as a whole will suffer with the loss of income – not to mention banks and credit unions. It will be very interesting to see where this all leads!

]]> By: splitscreen http://masteryourcard.com/blog/2008/05/02/decoupled-debit-cards/comment-page-1/#comment-1827 splitscreen Thu, 08 May 2008 16:57:36 +0000 http://masteryourcard.com/blog/2008/05/02/decoupled-debit-cards/#comment-1827 I can guarantee you that the credit card companies will do something to make up the lose of any interchange fees they may lose from these cards. The amount of money they make from those fees is absolutely astounding and way too much of a profit for the industry for them to just give them up. Unfaircreditcardfees.com has a lot of good information about how much money the credit card companies are netting from interchange - I've done some work with them before. The interchange fees are also currently being looked at by Congress along with all the other fees that are killing consumers right now. Hopefully more light will be shed on those fees that no one really even knows about soon, but right now the credit card companies love them and they're not going away. I can guarantee you that the credit card companies will do something to make up the lose of any interchange fees they may lose from these cards. The amount of money they make from those fees is absolutely astounding and way too much of a profit for the industry for them to just give them up. Unfaircreditcardfees.com has a lot of good information about how much money the credit card companies are netting from interchange – I’ve done some work with them before.

The interchange fees are also currently being looked at by Congress along with all the other fees that are killing consumers right now. Hopefully more light will be shed on those fees that no one really even knows about soon, but right now the credit card companies love them and they’re not going away.

]]>