Author Topic: Banks use interchange fees to help compensate fraudulent charges... For real? (Read 5583 times)

click_click · « **on:** March 19, 2011, 20:59 »

The article is not directly related to our issue but it addresses:

Quote

... The revenue banks get from interchange fees helps to offset money lost from fraudulent transactions. ...

http://money.cnn.com/2011/03/10/pf/debit_cards_limit/

I'm just gonna be sick. No harm to the bank, no harm to iStock but we have to bear the pain of their incompetence

caspixel · « **Reply #1 on:** March 19, 2011, 22:43 »

I hate hearing the banks whine about how much money they are going to "lose". F*ck them. We bailed those corrupt Em Effers out and they have come back stronger than ever. The least they can do is absorb the reduction of those * fees.

click_click · « **Reply #2 on:** March 19, 2011, 23:12 »

Quote from: caspixel on March 19, 2011, 22:43

... The least they can do is absorb the reduction of those fees.

Or the clawbacks from IS for that matter... Stingy ba$#@&ds.

gaja · « **Reply #3 on:** March 20, 2011, 08:47 »

I this where I tell you that my bank has no fees? My VISA card and mastercards are free, no withdrawal fees, no fees when I pay bills, no transfer fees. The only thing I pay them is interest on my mortgage (less than 4 %).

ShadySue · « **Reply #4 on:** March 20, 2011, 09:05 »

Don't even get me started on bankers' bonuses, e.g.
http://www.bbc.co.uk/news/business-12663730

click_click · « **Reply #5 on:** March 20, 2011, 09:18 »

Quote from: gaja on March 20, 2011, 08:47

I this where I tell you that my bank has no fees? My VISA card and mastercards are free, no withdrawal fees, no fees when I pay bills, no transfer fees. The only thing I pay them is interest on my mortgage (less than 4 %).

So do I, but when you think about it, how is it possible to get a plastic card produced, printed, put a magnet strip on it, personalized, account created, databases created, storage space provided for the data, online banking provided etc. FOR FREE?

People who are in debt are paying for those free "perks". That's how banks make money.

In many countries you can't have a bank account for free or credit cards for free. Some banks there realize that such amenities do costs money that is easier recovered by charging upfront fees instead of letting the one who are in debt pay for others' perks.

That's a huge topic and I don't want to get into it too deep but there is not really a such a thing called "free" as there are always costs involved...

donding · « **Reply #6 on:** March 20, 2011, 09:46 »

Banks make their money through interest charges and fees. When someone charges on their credit card the merchant pays the bank a certain percentage of the price in fees. Also if you don't pay off your balance every month you pay the bank interest fees. So they are making money off your credit card as well as interest. A company like American Express, which you must pay off in full each month charges the merchant more for the use of their card, that is why many merchants won't accept American Express, also American Express charges their cardholder a yearly fee to have the card.

tundraphoto · « **Reply #7 on:** March 20, 2011, 11:52 »

Most card companies charge the merchant around 3% or so simply for transferring the funds. So, even if you pay off your bill each month, the card company has already made 3% off you.

I don't hear iS going after the card companies. Apparently, it was all spelled out in the agreement that iS agreed to when they started banking with that card company. Otherwise, we'd be hearing of lawsuits. Also, the contributor agreement does not forbid take backs. So, we can complain all day, but it's business. As contributors, we need to complain to get iS to change their policy to absorb such costs or buy the necessary insurance to prevent future events.

caspixel · « **Reply #8 on:** March 20, 2011, 12:50 »

Banks have gotten far too used to their billion dollar profits.

Microbius · « **Reply #9 on:** March 21, 2011, 11:40 »

Quote from: click_click on March 20, 2011, 09:18

People who are in debt are paying for those free "perks". That's how banks make money.

Actually they make money both ways: the money people save with them gets invested or lent on too, and the interest they pay out is only a fraction of the actual profit they make off your savings.

click_click · « **Reply #10 on:** March 21, 2011, 11:51 »

Ok ok I (again) didn't use all the right words (non-english speaker here).

Banks make money in many different ways, of course.

I wanted to emphasize that it doesn't balance out if you consider the costs of running a bank while offering free bank accounts, cards, online banking infrastructure etc. It has to be paid as well while still offering full 24/7 access to your entire amount of money.

Lots of money is being "generated" by charging incredibly high fees for people in debt, therefore my analogy.

Where exactly the money is coming from to pay for the above mentioned things is impossible to tell but the debt business is a highly profitable branch of it for sure.

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Author Topic: Banks use interchange fees to help compensate fraudulent charges... For real? (Read 5583 times)

click_click

caspixel

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ShadySue

click_click

donding

tundraphoto

caspixel

Microbius

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