Riddle me this. Why are banks pushing debit card fees and some financial

[Skidmore]

advisors recommending that people use credit cards over debit? I've heard this being pushed twice in the past two days by erstwhile financial advisers on a couple of different programs. Banks have been losing credit card business. How can you turn a profit when people take to paying with cash? You penalize them for it and attempt to force them back into the credit market for regular purchases. Why should financial institutions with extremely high profit margins need money from you so that you can use your own money? Why is there no expectation that profit be used for services and investment?

[dkf]

1. I don't use debit cards because if fraudsters get your account numbers

You will be without those funds and possibly bounce payments.

But that is me.

Funny thing is my credit union doesnt want me to not have a debit card. They now charge me $1 a month for a regular bank ATM card!

[pitohui]

2. because stupid people pay fees, so why not pick the low hanging fruit?

not all banks are pushing the fees, and everyone who holds a debit card got a mailer, probably multiple mailers, telling what the fees would be and how to avoid them -- so yes, if you have half a brain, you have closed debit cards that charge fees, switched to credit cards (which are MUCH safer anyway), changed banks, or all of the above...but that's assuming you DO have that half a brain i mentioned

stupid people will ALWAYS screw up and find a way to pay fees, so if i had a bank, i'd do the same thing -- i'd charge a fee for everything and make my money off the stupid people

there isn't any money to be made with people like me who immediately cut up a debit card that changes to a fee-based system, in fact, i make extra money by participating in promotions where i get paid to try debit cards, try bill pay methods, open bank accounts, etc -- a well-organized person can make up to several hundred dollars in a good year by opening and using bank accounts wisely but most people are self-destructive idiots

i used to have a better view of the human race but after this many decades i have no doubt left, the MAJORITY of people are self-destructive, dis-organized idiots, and it's foolish NOT to have the fees because the self-destructive, dis-organized idiots WILL find a way to screw up so that they can give you lots of money for nothing

also, as a side note, banks no longer get much income from making loans because the interest rate is in the toilet, as you've probably noticed if you yourself make loans by having a savings account, CDs, etc -- the interest rate is so low you're not making much after shoving the paper around -- and the banks have an entitlement mentality that they once had all this huge income from interest on loans (interest rates were in the double digits in some previous decades!) that will likely never come again in a mature economy (look how long interest rates have stayed low in japan) so they have no alternative to maintain their incomes except to start creating fees

now, you and i understand that we're not "entitled" to have big income even in years where the interest rate is nothing, but banks (like all the wealthy) do have the "entitlement" mentality, which is why they accuse the little people of having it...it's classic projection

[brooklynite]

3. What do debit card fees have to do with paying with cash?

Nobody I'm aware is changing their fees for ATM or other withdrawls; just for the debit card transactions. No objection to opposing them, but I wouldn't conflate the two.

[Shagbark Hickory]

4. That would make sense but just 2 years ago they were cutting people's credit lines and closing their

accounts down.

The should make up their minds already.

[dameocrat67]

5. They want to replace their credit card business, which

is doing poorly because people have turned to atm cards.