Banks Circling the Wagons on the Heels Credit Card Reform

If you have followed the latest banking news, you may have noticed that Chase bank is exploring placing a $50 or $100 cap on your debit card. This restriction may also apply even if you use your card as credit. This means that shopping may become a bit difficult for people relying on debit cards. Imagine going grocery shopping and your card is declined because you surpassed the spending limit for that transaction. As stated in a previous blog, banks are finding ways to recoup their lost revenue due to the Credit Card Reform Act of 2009. Banks can currently charge businesses 44 cents per debit/credit card transaction. This fee will be reduced to 12 cents in July. This is a huge loss for banks that inevitably will be passed on to the consumer by possibly reducing your spending limit.  You may want to contact your bank and ask what changes may be coming to you. The next time you go shopping you may want to have your checkbook handy or as the old saying goes, "Cash is King."

Source: Fresh Start Consumer Care, LLC www.freshstartconsumercare.com