Tag Archive | "debit cards"

JP Morgan Considers a $50 Roof on Purchases via Debit Cards

JP Morgan debit card limitsYour spending habits may soon be changed after a reliable source disclosed that JPMorgan Chase, one of the largest banks in the nation, will consider capping transactions using your debit card at $100 or even $50. This decision is due to interchange fees.

At the moment, retailers pay around 44 cents for every debit card transaction. Those little charges sum up to $16 billion annually; this goes directly into your bank’s profits. However, the Wall Street reform
submitted in 2010 proposed that those fees be slashed to 12 cents beginning July of this year.

This could cost JPMorgan Chase, and all other major issuing banks, more than $1 billion annually. Joe
Price said that this overwhelming decrease in interchange fees will force banks nationwide to increase
their debit card transactions fees and possibly limiting their payment.

On top of the $100 to $50 limit on debit card transactions, Chase is also considering imposing a $3
monthly debit card fee. Also, the bank has stopped issuing debit reward cards since November of 2010.
However, the spokesperson of Chase Banks refused to comment on this issue.

Major Banks said that the interchange fees help them make up for fraudulent transactions. If banks
cannot find a way to cover that cost, they will need to pass on the charges to their consumers by issuing
additional charges.

If this pushes through on July, people will be forced to issue checks or withdraw from ATMs. This will
greatly affect those who have bad credits and are not eligible for a checking account or a credit card

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