Earlier this year, we brought you an article about the CARD act, and how it was going to help protect consumers against the seedier sides of credit card use: it requires anyone under age 21 to get a cosigner or prove their ability to pay their bill before obtaining a credit card, froze interest rates on new accounts for a full year, and mandated that statements must be mailed 21 days before the due date (among other things). Some lenders, fearing that revenue from credit card misuse might dry up a bit, tried to compensate for the lost income.
One such way was to attack debit cards; thankfully for consumers and retailers alike, a bill that will go into effect next year will be able to (at least partially) ward off the ambush of fees.
The Durbin Interchange Amendment, named after Senator Dick Durbin (D-IL) who sponsored it, will make the fees retailers are charged from debit cards more "reasonable" and "proportional to the costs of actually processing a transaction." Retailers will also be legally allowed to set up to a $10 limit for debit card transactions; while this may be a little inconvenient for some, both this and the fee restrictions will (hopefully) pass retail savings to consumers.
In the mean time, be careful with how you use both your credit and debit cards, and check out the "10 Loopholes the CARD Act Didn't Close" just to be safe.
--Brandon
Photo taken from this photostream and used with permission of a Creative Commons license.
Hi again Brandon
Well we are having a little brake from the rain for a couple of days, but we can be sure it won't last.
The way to do with these Bank is the way I do.
And that is pay the credit card a few days before it is due, I will not pay interest on a credit card.
Thats what I try to tell everyone to do.
Hugs to you, Rosalyn
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