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Possible Debit Card Fees

Loans are becoming harder and harder to acquire these days.  Banks are looking for new sources of revenue to make up for the loss.  Reports showed that consumers have used their debit card more than their credit cards in the last year.  Government has also passed recent regulations on credit cards and debit cards which makes the potential for banks to possible  new card fee.  With next years debit card use expected to grow even more banks are looking for new was to take advantage of these trends.  Banks are using debit card fees disguised as loyalty programs.  These programs reward the consumer for use of the card but charge a monthly fee for the membership.  Some of the programs offer up to 4% cash back for airline and gasoline with a monthly fee of five dollars.  Banks are hoping consumers keep up the debit card trend and consumer apply for the programs to make up in fees for the loss in loans.  The institutions are in business to make money and have to be creative in these markets to keep up and stay successful.  These programs are a great way to raise capital while still giving the image of taking care of the consumer through reward programs.  These programs were in the previous years free but now banks have run out of ways to raise money they are charging for the programs?  The consumers should expected to earn more through the programs if they are paying for the membership now.  The news of possible debit card fees at first seemed unreal but after reading the article the fees come from the benefit of reward programs, which didn’t seem to really be that bad.  

http://money.cnn.com/2009/11/23/news/companies/banks_debit_card/index.htm

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