Finance & Loans
Debit Cards
February 17, 2012 by elegant · Leave a Comment
Your debit card provides electronic access to your checking account with your financial institution. This is a great alternative to pay for your purchases rather than writing a check or to get cash from your checking account without going to the bank. There are several types of these cards available for your selection. An alternative to debit card is an ATM card.
New Federal regulations related to debit cards went into effect in October 2011. The new regulations limit how much a financial institution such as your bank can charge for processing fees from a merchant. New fee limitation is 21 cents (previously 44 cents). As a result of Dodd-Frank Act, loss revenue due new limitations to financial institutions is estimated at $6.6 billion a year.
Many financial institutions attempted to recover some of the lost revenue through new fees charged to customers for using debit cards but back down due to consumer revolt. So, be aware of rules related to your card before using it. Certain financial institutions charge a fee to withdraw cash from a teller machine that is not affiliated with their system.
A loss of a card is protected subject to a $50 limit.
