Chase Bank : Debit Card Cap
JPMorgan Chase Bank, One of the nation’s largest banks is considering capping debit card transactions at possibly $50 or $100. Why? As new legislation goes into impact this July, banks is going to be forced to drop their interchange charges from all around 44 cents to 12 cents per transaction. That may sound like good news for retailers who incur these charges every single time a buyer pays that has a debit card.
This legislation has left banks scrambling to locate a way to make up for that income. One way is always to discourage debit card purchases by introducing a cap of $50 or $100. If banks cap debit card transactions, customers will be forced to write checks, withdraw funds from ATMs, or place spending on credit cards. All 3 methods will bring about enhanced fee-based revenue for banks capping debit card transactions.
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