It was published some time earlier this month that the interchange fees are to be capped. What are these fees? These are the fees the merchants pay each time you use your debit card at their store. The Federal Reserve wants to cap the fee to the maximum of $0.12, versus the current average $0.44, which means – much less income for the banks.
Until now the banks were encouraging the customers to use their debit cards as much as possible. Chase, for example, introduced new rewards system for their customers just last summer (forgetting to deposit the promotion bonuses for those who signed up last year, while doing so… They corrected the mistake, but it cost some more to them…). As I was notified by a letter from Chase, this summer the program will be canceled. And, Chase are not alone.
This is just the first one of many steps the banks are going to take now to discourage you from using your debit card – exactly the opposite of what they’re doing for the last several years. Why? Because now it will be better for merchants, worse for the banks.
So, read carefully those letters you’ll be receiving from your banks, check out for new fees and restrictions on your debit cards, and shop wisely.
Your Little Advisor