Charging For Debit

You know, I have a problem with people who expect SOMETHING FOR NOTHING. This is seldom possible, unless you are speaking about the purest form of charity - again, very seldom.

Bank of America will start charging their debit card customers a $5/month service charge. GASP! This starts in 2012. Why would these rotten people at BOA climb into my pocket for $5 per month??? This is why: Until now, each debit purchase cost you 44 cents in bank service fees. It is hidden in the price of the product wether you pay in cash or plastic.  The federal government is forcing banks to collect only 24 cents per purchase, instead of 44 cents.  So, do you expect your bank to take a hit like this "sitting down?" If you do, you need to talk with your fairy godmother! Pay the $5/month. If you make more than 12 debit card purchases per month, you are coming out ahead! Or, you could pay in cash. You'll probably spend less and avoid the $5 fee.

Hey, it just hit me! This 20 cents per debit card purchase, which is no longer going to the bank, is going where? To the retailer!

Big deal? 500 debit card purchases per day multiplied by 20 cents (the money which is now not going to the bank) equals $100.00 a day, $700 a week, $36,500 a year. Hummmmm....almost enough to hire someone.

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