Banks complain about having to make an honest living

Previous corporate media headline: “Debit card fees: Debit cards likely to get much more expensive for consumers” – Los Angeles Times

It’s not the first time activists have complained about banks’ debit card practices. In the past, financial institutions made piles of money by reordering customer debits so the largest transactions cleared first. For example, if a customer had $100 in a checking account and made three $10 debit purchases early in the day and a final one for $200, the bank would process the $200 transaction first, then the smaller ones. The result: $140 in overdraft fees as opposed to $35 if the transactions had been processed in order. Facing numerous lawsuits, most banks, including Wells, Chase and BofA, have abandoned the high-to-low sorting of debits (although those three still process checks that way).

The latest whining is about losing he debit cards exchange fee battle.  I covered that previously in these posts here and here. 

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s