Big changes coming to use of debit cards incl. for travel

[bnoble Senior Member Find all posts View Profile Close bnoble]

I have a platinum AmEx, which provides some very unique benefits.

I carry this card as well. I make decent use of its benefits, particularly airport lounge access and the airline fee rebates. I think it delivers a fair value for the price. However, it is not "a bargain" or even "a good deal". In absolute terms, it is an expensive card to have.

[eal Senior Member Find all posts View Profile Close eal]

gandalf252002, a US financial reform bill will have no impact on Canadian banks, unless they choose to follow suit sometime in the future. Debit cards are much more popular in Canada than in the US, so they may not want to tamper with a good thing.

Interesting related article
Small businesses urge consumers to ditch credit cards | Money | Toronto Sun

[JWC Super Moderator Find all posts View Profile Close JWC]

gandalf252002, a US financial reform bill will have no impact on Canadian banks, unless they choose to follow suit sometime in the future. Debit cards are much more popular in Canada than in the US, so they may not want to tamper with a good thing.

Interesting related article
Small businesses urge consumers to ditch credit cards | Money | Toronto Sun

I think most people in the US don't use debit cards because they don't want to. Like I said, I have a debit card but only use it for ATM withdrawals. There are more benefits to using a credit card rather than debit card.

[lawren2 Malibu Beach Barbie & A Super Moderator Find all posts View Profile Close lawren2]

I think most people in the US don't use debit cards because they don't want to. Like I said, I have a debit card but only use it for ATM withdrawals. There are more benefits to using a credit card rather than debit card.

Depends on the debit card. Mine rewards me very well.

[flexible Senior Member Find all posts View Profile Close flexible]

Ditto, except I do pay an annual fee on a credit card that gives me miles, and on AmEx because the benefits appear to be worth it for me.

I use my debit card only at the ATM. I wasn't even aware that miles could be earned on debit purchases.

I got a Bank of America USAir Debit Card with an annual $30 fee so that I can easily purchase something on it every 18 months to keep my USAir miles account active. I have more than enough USAir points for two free trips so I don't want to lose them.

Bank of America also issues an Alaska Airlines Debit Card.

Sounds like these debit cards might be eliminated?

Someone told me they use their Bank of Hawaii Hawaiian Airlines DEBIT card to PAY their Bank of America Hawaiian Airlines Credit Card and receive FF miles for the amounts on BOTH cards (essentially doubling their miles).

[JWC Super Moderator Find all posts View Profile Close JWC]

Depends on the debit card. Mine rewards me very well.

Mine also but regardless of the rewards, it still does not offer the advantages of using a credit card instead.

[Carolinian Super Moderator Find all posts View Profile Close Carolinian]

From some other articles I have read, the big banks are experimenting with a number of new fees. One has several states where they are testing raising the fee for using a non-network ATM to $5 per transaction.

Apparently the reason for the idea of limiting the amount of transactions is that at present, the merchant fees are a percentage, with of course more $$ for the bank the higher the purchase. The new rules will cap their fee at 12 cents, while their average using percentages in 44 cents. The banks response is to force more smaller transactions to keep their fee revenue from collapsing too much.

It looks like whatever way it comes out, the consumers will pay for this fee war between the banks and the big merchants.

[JWC Super Moderator Find all posts View Profile Close JWC]

The fee that the credit card company charges vendors varies according to average transaction amount, number of transactions, etc. For example, an airline that has relatively large transaction amounts and lots of them will pay a lower percentage than a convenience store would.

[polkarandy Junior Member Find all posts View Profile Close polkarandy]

The interesting thing about this discussion is that it all means higher prices and fees for the consumer. All costs, fees, taxes get passed on to the final consumer of the product, regardless of what it is. Banks, businesses, etc. just pass the costs along.

[Carolinian Super Moderator Find all posts View Profile Close Carolinian]

The interesting thing about this discussion is that it all means higher prices and fees for the consumer. All costs, fees, taxes get passed on to the final consumer of the product, regardless of what it is. Banks, businesses, etc. just pass the costs along.

Yeah, that is pretty crappy. The large merchants get legislation passed to cut thier own fees, and they certainly won't share any of that windfall with consumers, so the banks make it up by shifting fees and inconvenience to consumers. It should not have taken a rocket scientist to see that this was going to be the result of this legislation.

[mpizza Senior Member Find all posts View Profile Close mpizza]

Got the bad news today that my Chase debit card will stop earning CO airline miles as of July 12, 2011.

Amex sent notice a while ago that it will stop partnering with CO in October of 2011.

I'm not a happy camper.

Maria

[Carolinian Super Moderator Find all posts View Profile Close Carolinian]

Here is an interesting thread from Flyer Talk:

Chase kills debit card rewards, including United miles and free checked bag - FlyerTalk Forums