Debit Card Use Wavers as Cash Stages Comeback: Survey

Consumers may be returning to the simplicity of paying with cash, and wavering on the use of debit cards, as new regulations have created a confusing purchasing environment. A report by Javelin Strategy & Research finds that new regulations on so-called “swipe fees” – the fee banks charge merchants for debit card transactions – is a primary factor for the confusion.

Read more

Consumer Groups to U.S. Agency: Provide Prepaid Card Protections

Consumer advocacy groups want prepaid card issuers to provide customers with the type of protections required for debit cards tied to bank accounts. They are calling on the Consumer Financial Protection Bureau (CFPB) to protect consumers who are relying on general purpose, reloadable prepaid cards for managing their finances during these hard economic times.

Read more

Dreaded Debit Card Overdraft Fees are History – Unless You ‘Opt-In’

Starting today, new regulation drawn up by the Federal Reserve prohibits overdraft fees on consumers using debit or ATM cards – unless the card user has opted to join a bank’s overdraft protection plan. For those who do not “opt-in,” debit card purchases will be denied if you are overdrawn – but no overdraft fees will be imposed.

Read more

Schumer to Fed: Consumers Need Clarity on New Checking Fees

Some of the nation’s largest banks are about to start charging new checking account fees, and that has prompted Sen. Charles Schumer to ask Federal Reserve Chairman Ben Bernanke to make sure banking customers will get sufficient and clear notice. The new trend is a response by the banking sector to anticipated declines in revenue from debit card fee restrictions to take effect next week.

Read more

Bank of America: Low-Balance Alerts Part of Overdraft Plan

In addition to its ground-breaking plan this summer to end overdraft fees on its debit card purchases, Bank of America is also going to offer alerts to online customers if their checking account balance is too low or overdrawn. The nation’s largest bank will end the frustrating and much-maligned practice of overdraft fees on debit cards, but customers can still be charged for being overdrawn on checking accounts by writing too many checks or having too many debits through automated bill-pay.

Read more