The Down Range Forum
Member Section => Down Range Cafe => Topic started by: Hazcat on March 15, 2011, 07:50:55 AM
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Posted by Erick Erickson (Profile)
Monday, March 14th at 8:00AM EDT
Senator Dick Durbin’s (D-IL) amendment to the Financial Overhaul Bill is set to go into effect in April that will allow Obama and the Federal Reserve to set the prices of debit card interchange fees.
That may sound like a boring topic, but consider this: because of Dick Durbin’s amendment, banks are about to restrict the number of and amount of daily debit card purchases you can make. That’s right. JP Morgan is considering capping your debit card purchases at $50.00 to $100.00 per purchase.
Lenders have repeatedly warned that the proposal, in its current form, will force them to cut benefits on debit-cards and impose new fees and restrictions.
Banks say they are considering many options in response; Bank of America Corp., Wells Fargo & Co. and J.P. Morgan have already begun to revamp debit programs.
Why? With the government setting price controls on debit card interchange fees, banks can’t make money off them. Consequently, they’ll be forced to push you and me into actual credit cards to make money. But that’s not all.
The Fed has been talking about capping the interchange fee at 12 cents per transaction, barely ¼ of the current average fee of 44 cents. That means that local banks and credit unions will have to find other ways to make up revenues that will be lost. The banks’ loss, however, is the big box retailers’ gain.
The CEOs, working in cahoots with Durbin and the then filibuster proof Democrat Senate, are thrilled with the extra profits they will make once the rule goes into effect. Home Depot Exec, Carol Tome has said, “Based on the Fed’s draft regulations, we think the benefit to The Home Depot could be $35 million a year,” an amount they are willing to fight for. The lobbying efforts of these merchants have killed any attempts to codify passing savings along to the consumers, guaranteeing that retailers will get all of the profits for themselves.
On the eve of the vote, Wal-Mart donated $20 million to Durbin’s hometown of Chicago; just a small amount compared to the extra profits they plan to line their pockets with once the rule is enacted.
The merchants’ current position is to lobby Republican leaders and ask them to do nothing, which is in fact, allowing Dick Durbin, Ben Bernanke and the Fed to price fix.
--SNIP--
http://www.redstate.com/erick/2011/03/14/durbin-and-federal-reserve-plot-to-fix-prices-and-harm-consumers/
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Correct me if I'm wrong, this has already been passed? Now they want to cap purchases on a debit card to $50 or $100? That is stupid in of itself. Sales of electronics and groceries are going to take a hit. Not because people cannot afford them, but because people can't pay for them with a debit card. I know a lot of people that don't really carry cash anymore. EVERYTHING goes on the debit card. Add to that the proliferation of online bill pay, and the fact that not many places accept checks anymore. Now you have credit card companies tightening down on who they will issue a card to. That just leaves the debit card as many peoples primary means of payment.
When are the American people going to say enough? Hell even the states are waking up to the fact that Washington is screwing our money.
http://www.foxnews.com/politics/2011/03/04/utah-house-passes-recognizing-gold-silver-legal-tender/?test=latestnews
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Correct me if I'm wrong, this has already been passed? Now they want to cap purchases on a debit card to $50 or $100? That is stupid in of itself. Sales of electronics and groceries are going to take a hit. Not because people cannot afford them, but because people can't pay for them with a debit card. I know a lot of people that don't really carry cash anymore. EVERYTHING goes on the debit card. Add to that the proliferation of online bill pay, and the fact that not many places accept checks anymore. Now you have credit card companies tightening down on who they will issue a card to. That just leaves the debit card as many peoples primary means of payment.
When are the American people going to say enough? Hell even the states are waking up to the fact that Washington is screwing our money.
http://www.foxnews.com/politics/2011/03/04/utah-house-passes-recognizing-gold-silver-legal-tender/?test=latestnews
The banks will put the caps in place. The idea is to force people to get higher interest "Credit Cards" instead of using their debit card.
http://www.redstate.com/erick/2011/03/14/durbin-and-federal-reserve-plot-to-fix-prices-and-harm-consumers/
Posted by Erick Erickson (Profile)
Monday, March 14th at 8:00AM EDT
17 Comments
Senator Dick Durbin’s (D-IL) amendment to the Financial Overhaul Bill is set to go into effect in April that will allow Obama and the Federal Reserve to set the prices of debit card interchange fees.
That may sound like a boring topic, but consider this: because of Dick Durbin’s amendment, banks are about to restrict the number of and amount of daily debit card purchases you can make. That’s right. JP Morgan is considering capping your debit card purchases at $50.00 to $100.00 per purchase.
Lenders have repeatedly warned that the proposal, in its current form, will force them to cut benefits on debit-cards and impose new fees and restrictions.
Banks say they are considering many options in response; Bank of America Corp., Wells Fargo & Co. and J.P. Morgan have already begun to revamp debit programs.
(SOURCE)
Why? With the government setting price controls on debit card interchange fees, banks can’t make money off them. Consequently, they’ll be forced to push you and me into actual credit cards to make money. But that’s not all.
The Fed has been talking about capping the interchange fee at 12 cents per transaction, barely ¼ of the current average fee of 44 cents. That means that local banks and credit unions will have to find other ways to make up revenues that will be lost. The banks’ loss, however, is the big box retailers’ gain.
The CEOs, working in cahoots with Durbin and the then filibuster proof Democrat Senate, are thrilled with the extra profits they will make once the rule goes into effect. Home Depot Exec, Carol Tome has said, “Based on the Fed’s draft regulations, we think the benefit to The Home Depot could be $35 million a year,” an amount they are willing to fight for. The lobbying efforts of these merchants have killed any attempts to codify passing savings along to the consumers, guaranteeing that retailers will get all of the profits for themselves.
On the eve of the vote, Wal-Mart donated $20 million to Durbin’s hometown of Chicago; just a small amount compared to the extra profits they plan to line their pockets with once the rule is enacted.
The merchants’ current position is to lobby Republican leaders and ask them to do nothing, which is in fact, allowing Dick Durbin, Ben Bernanke and the Fed to price fix.
In a February hearing of the House Subcommittee on Financial Institutions and Consumer Credit on the Durbin Amendment Interchange Rule, Jeb Hensarling (R-TX) attempted to highlight the lack of consumer benefits this rule will impose when addressing 7-Eleven VP David Seltzer,
“If Congress does not act to delay this for further study, when the Federal Reserve rule is implemented, if I go to the 7-Eleven in Lakewood, Texas, in the Lakewood neighborhood of Dallas, Texas, can I expect a gallon of milk to drop in price? Can I expect a gallon of gas to drop in price?… I expect you don’t know the answer to the question, but I want to make a point here… Do you know what the incremental cost is of producing a Slurpee? I just wonder how 7-Eleven would feel if the Federal Reserve came in with a rule that said you can only recover the incremental cost of selling a Slurpee. My guess is the ice and the fruit flavor don’t cost a whole lot, but you got a lot of fixed cost. I think you get the point.”
So much for consumer protection! Not only can consumers not expect to see prices go down as a result of this rule, many banks are saying that they will have to “abandon free checking and boost other charges to consumers to recover lost revenue,” (Daily Caller). Then there’s the debit card restrictions. Better find that old checkbook wallet.
But merchants need to beware of what they are asking for. Allowing the Obama administration to fix prices could come back to bite them when the next logical step, controlling the price of consumer goods, follows.
Some in the GOP believe that there’s no point in doing anything, since the Senate can’t move a bill. That line of thinking would continue the reckless deficit spending that Harry Reid seems intent to continue.
Thankfully, there is a courageous band of renegade conservatives that need to be commended for fighting for conservative principles. Representatives Spencer Bachus (R-AL), Shelley Moore Capito (R-WV), Jason Chaffetz (R-UT), Jeb Hensarling (R-TX), Randy Neugebauer (R-TX), Jim Renacci (R-OH), Sean Duffy (R-WI) and Senators Bob Corker (R-TN), Mike Lee (R-UT), Rand Paul (R-KY) and Pat Roberts (R-KS) will not take the do nothing bait. They need more conservatives to co-sponsor legislation so the free market can continue.
Let’s just hope they can convince the rest of their colleagues to join in the fight to stop Ben Bernanke from price fixing.
Standing idly by, is an endorsement of Obama Administration price controls and Dick Durbin’s leadership.
It is also an abdication of conservative principles and responsibility.
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That may sound like a boring topic, but consider this: because of Dick Durbin’s amendment, banks are about to restrict the number of and amount of daily debit card purchases you can make. That’s right. JP Morgan is considering capping your debit card purchases at $50.00 to $100.00 per purchase.
So you can only buy a 1/4 tank of gas now at one time?
Hard to imagine a Chicago politician doing something that would screw the American public. ::)
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Basically spending money with a card will go away.
Replaced by increasing debt, (even if only till the next bill ) at 19+% + service charges + "Point of sale" surcharges, + fees for drawing cash etc etc.
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The banks will put the caps in place. The idea is to force people to get higher interest "Credit Cards" instead of using their debit card.
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Did you miss my point about banks tightening eligibility requirements for credit cards? What are you supposed to do when your bank won't issue a credit card and then at the same time imposes a daily cap on how many times you can spend on a debit card? Makes it pretty difficult to do much of anything in today's world when you can't spend more than $100 at a time.
Also consider that the feds flag you for withdrawing large amounts of cash. (My credit union says that the tipping point is $1000) I'm not sure if that is the feds number or the FCU's
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Any person or business that would try that would be charged with felony federal crimes! (but since it's Odumbass's ChicagoMafia buddies it's all good!)
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Did you miss my point about banks tightening eligibility requirements for credit cards? What are you supposed to do when your bank won't issue a credit card and then at the same time imposes a daily cap on how many times you can spend on a debit card? Makes it pretty difficult to do much of anything in today's world when you can't spend more than $100 at a time.
Also consider that the feds flag you for withdrawing large amounts of cash. (My credit union says that the tipping point is $1000) I'm not sure if that is the feds number or the FCU's
OH, don't worry, they will issue credit cards all right, You will just pay a "reasonable" extra few percent in interest as a "high risk" customer and maintain a set monthly balance (so they can soak you for that interest ).
Car dealers require a credit check and so forth, but there's no shortage of "Buy Here, Pay Here" outfits all making money selling cars at inflated prices and interest rates.
Credit cards will be the same way. Hell, many banks will cancel your account if you pay the balance every month since they can't charge you interest.
I'm old fashioned, I use cash.
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I use my credit card for most of my purchases. I pay it off every month so I don't pay interest and I get 1% back. If I didn't have a credit card I would get a debit card because I don't carry much cash.
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wait, so my choice is I write them a check or I use my debt card... last time I checked the debt card is alot cheaper for the bank then a check woudl be.
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Credit Unions will be exempt. As they are tax-exempt. aka,...(non-profit),... Also a bank is only as good as it's depositors. Don't like the "fees" your bank charges?
"Bye-Bye".....
Chase is starting this, other "big" banks will follow suit, but the smaller banks, the ol' Building & Loan, still has FDIC insurance, and three things will happen:
1) This is a plot to Nationalize Banks by our Illustrious Socialist Regime.
2) Others will withdraw and close existing accounts for exempt credit unions.
3) Grampa was right in keeping cash in coffee cans.
Online banking is also a consideration. Hmmmmm,.... Writing checks (old school)?
Is this like Obamacare, forcing you to pay for something that is otherwise a consumer choice? Seems some Constitutional considerations come into play, with the Regulatory Commission, and Commerce Clause issues,.. and have we audited the FED yet?
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I think we need to go back to the old system... banks could not cross state lines and you could either be a holdings bank or a investment bank, not both.
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OH, don't worry, they will issue credit cards all right, You will just pay a "reasonable" extra few percent in interest as a "high risk" customer and maintain a set monthly balance (so they can soak you for that interest ).
Car dealers require a credit check and so forth, but there's no shortage of "Buy Here, Pay Here" outfits all making money selling cars at inflated prices and interest rates.
Credit cards will be the same way. Hell, many banks will cancel your account if you pay the balance every month since they can't charge you interest.
I'm old fashioned, I use cash.
Fought with Discover for years over this. I would use it and pay it off every month. Then about every six months I would use it and it would be declined. I really scratched my head the first time it happened. How does a card with no balance and a $5000.00 limit get declined for purchase of $300.00? Found out later that they had canceled the account and just failed to let us know about it.
Of course the bad thing is that it ends up looking bad on your credit report when crap like that happens. >:(
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Also consider that the feds flag you for withdrawing large amounts of cash. (My credit union says that the tipping point is $1000) I'm not sure if that is the feds number or the FCU's
Might be the FCU's policy. The 'notify the feds' limit used to be $10,000.
On edit: I can't believe you guys don't carry a nice hunk of cash with you. I try to have at least a couple hundred in my wallet. Never know when coming out of a gun store you could run into somebody wanting to sell one - or garage sales!
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I haven't used anything but cash or Postal Money orders for 10 years.
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I won't buy money orders because checks are only 9 cents from the credit union. I use less than one a month so a box of 150 lasts a long time. I rarely use cash unless it's something fairly cheap, like food. I use a credit card for more expensive things, like a tank of gas.
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When given a choice I will not accept checks. Money orders are paid in advance, they can not bounce if you throw them on the floor.
If I have to accept a check I cash it on the bank its drawn on, They have to honor it.
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When given a choice I will not accept checks. Money orders are paid in advance, they can not bounce if you throw them on the floor.
If I have to accept a check I cash it on the bank its drawn on, They have to honor it.
If they are postal money orders if they turn out to be bad, the post office will go after them tooth and nail. I'd mess with the ATF before I messed with teh USPS.
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If they are postal money orders if they turn out to be bad, the post office will go after them tooth and nail. I'd mess with the ATF before I messed with teh USPS.
How can a postal money order be "bad"? They aren't issued until you give the USPS the money to cover them.
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When given a choice I will not accept checks. Money orders are paid in advance, they can not bounce if you throw them on the floor.
If I have to accept a check I cash it on the bank its drawn on, They have to honor it.
No, they don't. Been there, done that. Took a check for services and presented it at the bank upon which it was drawn. NSF, no money for me. Too bad, so sad.
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How can a postal money order be "bad"? They aren't issued until you give the USPS the money to cover them.
Forged, faked, or stolen.
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Forged, faked, or stolen.
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the USPS investagations unit has something like a 93% conviction rate. its well above any other federal LEA. you don't mess with the post office.
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Your better off murdering a Cop than bumping into a mailman.
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Maybe we should tell the USPS that illegals are stealing mail. :P ;D
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Your better off murdering a Cop than bumping into a mailman.
in you compare min time in jail, you can actaully rob a bank 3 time and be half way thru the 3rd sentence when its time to get out if you rob a post office. One of those really old laws that was created when the post office carryed payroll.
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TAB is right, it goes back to the Teen's and Twenties, when they had to put armed Marine guards in the Mail cars on trains.
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TAB is right, it goes back to the Teen's and Twenties, when they had to put armed Marine guards in the Mail cars on trains.
older then that, actually. I want to say 1860s.
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older then that, actually. I want to say 1860s.
The lure of robbing mail because of pay rolls yes. But while I'm not positive, I am pretty sure that the legal sanctions part of it only dates back to the beginning of the 20th century.
Prior to that the Railroads themselves handled it by hiring groups like the Pinkerton Detective Agency (We never sleep ) to hunt them down and kill them.
If you have a reference that says otherwise I'd be happy see it.