Warning: DEBIT CARD CHANGES COMING

If you’re like most Americans, you rarely carry cash around these days.  With your trusty debit card always conveniently located in your wallet, who needs cash when a simple swipe of the card will do?  Well don’t look now, but all that’s about to change!

According to the Wall Street Journal, many banks are now considering a forced limit on just how much you can spend on your debit card.  For example, JP Morgan Chase Bank is thinking of setting a $100 maximum spending limit per transaction.

Why would they do this, you ask?  Well, debit cards have traditionally been a cash cow for banks. With an unregulated ability to set monthly and per transaction fees, as well as charge businesses per use, banks have been “laughing all the way to the bank” with our affinity to use our cards for the most minute and simplest of purchases. But with new government changes about to be implemented, new rules won’t fare well for banks looking to drain us all dry with fees.

A new debit card rule known as the Durbin Amendment will take effect in July, making debit cards extremely unprofitable for banks. The new law will basically reduce the fees associated with debit card purchases (fees bank charge businesses every time you swipe), which will soon work against the debit card industry model.  Once the new rules are in effect, the entire banking industry could lose an estimated $15.2 billion a year in revenue from their loss of “fees.”

Since we all know banks have no interest in losing money, their solution to the Durbin Amendment is to limit your usage of debit cards and even make it downright inconvenient, hoping that you switch over to their more profitable credit and charge card business. By imposing a $100. limit per purchase, consumers will no longer be able to use their debit card for such common purchases as an airline ticket, a hotel stay, or a car rental.

But think you can circumvent the rules by just swiping your card 4 times for a $400. purchase? Well, guess again. These cunning bankers are considering limiting the number of debit card purchases you can make in a month. For example, if you attempted to use 4 swipes to make a $400. purchase, that one day transaction could actually put you right at your limit for the entire month! And if there are monthly limits, say goodbye to grabbing a burger, soda, or even a pack of gum with your trusty debit card.  Or in other words, if there’s no money in it for the banks, your days of debit card convenience are done!