Banks’ Newest Game: Debit Card Fees
Numbers have shown that this year, Americans have spent more money through debit cards as compared to credit cards. This is the first time that it has ever happened, and the reason may be tighter restrictions on credit card holders and greater fee.
Moreover, consumers are expected to spend $1.64 trillion in the next year using their debit cards
But could debit cards be the new way for banks to make more money?
Debit cards usage is expected to grow more in the coming years. The high interest rates and the bad economy has made Americans reluctant to take on more debt. Also, as the new federal legislation takes effect next year, banks are expected to become more stingy with credit cards, which could make the debit card the preferred form of payment for many consumers.
Banks have noticed this too, and are recurrently looking for different ways to make any extra cash at a time of severe loan losses.
Lenders are increasingly focusing on loyalty or rewards programs for debit card users. This has been done with credit cards in the past years, but now, an increasing numbers of banks are considering such programs as a way to generate more fees from consumers.
Consumers need to keep their eyes open when it comes to financial services. In order to get the best deal, it is better to do some comparison-shopping. There may be many good deals at the other end of the spectrum.
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