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[neutralgamer02]

http://thehill.com/blogs/floor-acti...ations-ending-biggest-k-street-battle-of-2011

A bipartisan coalition of senators on Wednesday rejected a heavily-lobbied proposal to delay regulations on debit card fees, which will save retailers and cost banks billions of dollars in revenue.

Fifty-four senators voted in favor and 45 voted against the measure, which needed 60 votes to pass. Nineteen Democrats joined 35 Republicans voting yes.

The vote is a major victory for Senate Democratic Whip Dick Durbin (Ill.), who sponsored legislation last year directing the Federal Reserve to review the fees banks charge on debit transactions.

Durbin's side was supported by 12 Republicans and 32 Democrats, plus independent Sen. Bernie Sanders (Vt.). Joe Lieberman (I-Conn.) did not vote.

The Fed is on pace to issue final rules by July 21 that could cap fees at 12 cents per transaction, a fraction of the 44-cent average banks now charge.


Sens. Jon Tester (D-Mont.) and Bob Corker (R-Tenn.), backed by a well-financed banking lobbyists, led the charge to require the Fed to delay its rulemaking process to allow for further study.

Durbin, however, charged it was a veiled effort to kill the rulemaking process and argued the agency, which has collected 11,000 comments on the issue, has studied the proposed rule long enough.

The contentious issue split the Democratic leadership. Senate Majority Leader Harry Reid (D-Nev.) sided with Durbin.

Senate Democratic Policy Committee Chairman Chuck Schumer (N.Y.), the third-ranking member of the Democratic leadership and Durbin’s rival to succeed Reid as leader, voted with Tester and Corker.

The policy fight triggered the biggest K-Street battle of the year and may have helped Tester collect tens of thousands of dollars in contributions from banking interests.

Public fundraising records show Tester collected nearly $60,000 in contributions from credit card companies and other opponents to proposed caps on swipe fees in the 17 days following the introduction of his legislation.

Speaking before the vote, Tester downplayed the influence of banking lobbyists and contributions.

“Look at me. Do I look like a banker?” said Tester, a burly farmer who still sports a flat-top. “Senator Corker and myself drew this amendment up. The banks did not draw up this amendment.”

Durbin said throughout the debate that he has the highest respect for Tester and held no animosity toward his adversary. Even so, the issue appeared highly personal to Durbin, who delivered a ringing, impassioned speech before the vote.

“It’s our choice about whether or not these banks are going to prevail or not,” Durbin said. “And history will record the strength of consumers, small businesses across America against the Wall Street banks who take away more than half of the interchange fees on debit cards that are collected across America.”

 

[Trojita]

Sens. Jon Tester (D-Mont.)
Bob Corker (R-Tenn.)
Chuck Schumer (N.Y.)

Pieces of shit.

 

[SRG01]

I remember back in the day when there were no fees on debit transactions (in Canada) and being surprised when one day I found out I only had a limited number of transactions.

Debit card transactions are pure profit for the banks, plain and simple. They should not be charging for what essentially is a user fee.

 

[ClovingWestbrook]

Sens. Jon Tester (D-Mont.)
Bob Corker (R-Tenn.)
Chuck Schumer (N.Y.)

Pieces of shit.

Pretty much.

 

[Chichikov]

The lesser of two lobbying evils won.

 

[badcrumble]

Banks have proposed capping debit card use at some absurdly low amount as a retaliatory measure, IIRC, but that's hopefully just an empty threat.

 

[Escape Goat]

Banks have proposed capping debit card use at some absurdly low amount as a retaliatory measure, IIRC, but that's hopefully just an empty threat.

I got charged 5 bucks as a "Service Fee' because I used my debit card 5 times in one day. Fucking A I called them and bitched them out. 16 years at the bank and they sneak this in without any warning.

 

[WickedAngel]

Banks have proposed capping debit card use at some absurdly low amount as a retaliatory measure, IIRC, but that's hopefully just an empty threat.

That's OK. Debit cards aren't all that great anyways.

 

[ClovingWestbrook]

That's OK. Debit cards aren't all that great anyways.

Huh?

 

[WickedAngel]

Huh?

There isn't any ambiguity in the statement I made.

 

[Escape Goat]

There isn't any ambiguity in the statement I made.

No, its just wrong! Debit cards are awesome.

 

[Jason's Ultimatum]

I use my debit card every day. Feels good, man.

 

[WickedAngel]

No, its just wrong! Debit cards are awesome.

Responsible use of credit cards offers greater protection and benefits.

 

[mike23]

That's OK. Debit cards aren't all that great anyways.

This is the truth.

Use a credit card, people. 30 day (at least) interest free loan, 1-3% off all purchases, fraud protection, extended warranties. Hell, I get free phone insurance from paying my phone bill on one of my cards. I could toss my phone into the ocean and a check for a new one would be in the mail the next day.

All for the cost of .... nothing. I haven't payed a dime in interest on my credit cards in years.

 

[SoulPlaya]

Scchumer is one of the biggest scumbags and shills in all of Congress. Originally, he was a supporter of financial regulation (he opposed the repeal of Glass-Steagall). Then, the financial industry started donating large amounts to his campaigns (they're now his biggest contributor), and he started supporting the repeal of Glass-Steagall, and now he does the dirty work of banks in Congress.

 

[ClovingWestbrook]

There isn't any ambiguity in the statement I made.

Please do tell why you feel that way. Sure, it doesn't build up your credit but honestly, if I have money in my account and I make 5 purchases a day with my debit card x 30, that is about 150 purchases at the end of the month. I'd rather the money be taken out of my account when I know I have it than wait until the end of the month to pay my CC bill when I may not have the cash there. I have a few CCs and prefer to use them only when need be.

 

[RustyNails]

Dont worry guys the free market will regulate itself when consumers protest the extra charges and take the debit card companies to court or when they stop doing business with them and look for alternative methods.

 

[Slayven]

Ah, one of the great GAF debates. Debit card vs Credit Card.

 

[DurielBlack]

Please do tell why you feel that way. Sure, it doesn't build up your credit but honestly, if I have money in my account and I make 5 purchases a day with my debit card x 30, that is about 150 purchases at the end of the month. I'd rather the money be taken out of my account when I know I have it than wait until the end of the month to pay my CC bill when I may not have the cash there. I have a few CCs and prefer to use them only when need be.

Why wouldn't you have the cash there? If you are putting the money on the CC and paying it off at the end of the month vs using a debit card and having it removed right away there should be no difference, unless you are THAT bad about burning money.

I prefer cash myself anyways, I have a debit card and never used it. I often go to the bank and withdraw cash if I am planning on spending anything. If something crops up and I don't have enough I will use my CC or write a check.

 

[mike23]

Please do tell why you feel that way. Sure, it doesn't build up your credit but honestly, if I have money in my account and I make 5 purchases a day with my debit card x 30, that is about 150 purchases at the end of the month. I'd rather the money be taken out of my account when I know I have it then wait until the end of the month to pay my CC bill when I may not have the cash there.

I don't understand this. You can't plan your expected expenditures out even a month in advance?

Say you have $1000 in cash and you make $500 in purchases over the month.

With a credit card, you get a bill at the end of the month for $500 and you get to keep $1000 in cash completely liquid through the month.

With a debit card, your liquid cash constantly drops through the month.

If an unexpected cost comes up at the end of the month and you need $900 cash, there are two scenarios.

1. You used a credit card. You pay the minimum payment to buy yourself time for the cost of <$20 (interest) and you cover the unexpected cost. The interest cost is also offset by the 1% or 5$ that you get back from rewards.

2. You used a debit card and you're shit out of luck.

 

[PhoenixDark]

Scchumer is one of the biggest scumbags and shills in all of Congress. Originally, he was a supporter of financial regulation (he opposed the repeal of Glass-Steagall). Then, the financial industry started donating large amounts to his campaigns (they're now his biggest contributor), and he started supporting the repeal of Glass-Steagall, and now he does the dirty work of banks in Congress.

And he has a very good shot at becoming the next majority (or minority) leader of the dems in the senate. Not liking that at all

 

[JGS]

I remember back in the day when there were no fees on debit transactions (in Canada) and being surprised when one day I found out I only had a limited number of transactions.

Debit card transactions are pure profit for the banks, plain and simple. They should not be charging for what essentially is a user fee.

This is incorrect. They are used to fund things that cost the customers nothing (At least at my bank) such as fraud prevention & the whole debit card infrastructure.

This law means nothing to the consumer because it'll be a cold day in Tuscon before merchants lower their prices to reflect it. Might be a good idea to invest in some retail stocks though and prepare for another random miscellaneous fee to recoup what is being lost from the merchant.

 

[empty vessel]

This is the truth.

Use a credit card, people. 30 day (at least) interest free loan, 1-3% off all purchases, fraud protection, extended warranties. Hell, I get free phone insurance from paying my phone bill on one of my cards. I could toss my phone into the ocean and a check for a new one would be in the mail the next day.

All for the cost of .... nothing. I haven't payed a dime in interest on my credit cards in years.

It's not for the cost of nothing. It's at the cost of higher priced consumer goods. Retailers have to pay for all those credit swipe fees somehow--they recoup the money that credit card companies charge them by ... charging you. In effect, you pay for your own rewards.

 

[mike23]

It's not for the cost of nothing. It's at the cost of higher priced consumer goods. Retailers have to pay for all those credit swipe fees somehow--they recoup the money that credit card companies charge them by ... charging you. In effect, you pay for your own rewards.

Yes, but you pay them too with a debit card. Credit cards aren't going to go away so there's no reason not to take advantage.

 

[The Technomancer]

Sorry, the article makes weird use of a double negative, is this a good thing for consumers or a bad thing? Do we want debit cards to be regulated, or not?

 

[empty vessel]

Sorry, the article makes weird use of a double negative, is this a good thing for consumers or a bad thing? Do we want debit cards to be regulated, or not?

Consumers want cards to be regulated. Specifically, you want regulations to force banks to charge retailers less in fees. This will reduce the cost of goods, which are inflated due to the fees retailers have to pay banks and which they pass on to you through the cost of goods. Basically, banks are using cards to siphon money from consumers.

 

[The Technomancer]

Consumers want cards to be regulated. Specifically, you want regulations to force banks to charge retailers less in fees. This will reduce the cost of goods, which are inflated due to the fees retailers have to pay banks and which they pass on to you through the cost of goods. Basically, banks are using cards to siphon money from consumers.

Right, so this is a good thing. The regulations were going to be delayed, and that got rejected.

 

[evil solrac v3.0]

credit card and cash.

 

[empty vessel]

Right, so this is a good thing. The regulations were going to be delayed, and that got rejected.

Right. Ironically, it got rejected by a minority, 54-45, because they needed 60 to enact the delay.

So a majority of Senators still favored fucking over Americans.

 

[demon]

Responsible use of credit cards offers greater protection and benefits.

Thank you Discover Card rep. I'll continue using a card that has direct access to my money, with my Credit Union, never been a problem for me.

 

[Plasmid]

Is this why i have a mysterious "$5 withdrawal" from my card?

 

[GhaleonEB]

Sens. Jon Tester (D-Mont.)
Bob Corker (R-Tenn.)
Chuck Schumer (N.Y.)

Pieces of shit.

Yup.

Right. Ironically, it got rejected by a minority, 54-45, because they needed 60 to enact the delay.

So a majority of Senators still favored fucking over Americans.

Yup. 19 Democrats is an alarming proportion. I guess I shouldn't be surprised at this point, but it's depressing none the less.

 

[WickedAngel]

Thank you Discover Card rep. I'll continue using a card that has direct access to my money, with my Credit Union, never been a problem for me.

If you don't see why that's a bad idea, I can't help you. Nobody can.

 

[Zaraki_Kenpachi]

Please do tell why you feel that way. Sure, it doesn't build up your credit but honestly, if I have money in my account and I make 5 purchases a day with my debit card x 30, that is about 150 purchases at the end of the month. I'd rather the money be taken out of my account when I know I have it than wait until the end of the month to pay my CC bill when I may not have the cash there. I have a few CCs and prefer to use them only when need be.

You do realize you can pay towards your bill early right and thus it becomes like a debit card? I usually pay my bill before my statement if I have money.

 

[Whipped Spartan]

Is this why i have a mysterious "$5 withdrawal" from my card?

I haven't followed closely but I am pretty surethe bill is in regards to the credit card processing percentages/fees merchants pay when customers use plastic.

 

[Flo_Evans]

If you don't see why that's a bad idea, I can't help you. Nobody can.

I dunno, my bank is pretty awesome. Any time I start making crazy purchases they call and ask if everything is ok.

DEBIT for life!

I also have a CC...

 

[See You Next Wednesday]

mike23, your entire scheme seems to depend on not paying interest rates on introductory cards which absolutely rapes people in the long term (imagine 12-20% on a big ticket purchase like a PC or TV).
That or getting "rewards" back from credit card companies, which in a lot of situations are completely useless for many people.

 

[Baraka in the White House]

Ugh, on this forum there always seems to be certain topics with a small but incredibly vocal minority offering bad advice to anyone who will listen.

Add the CC/DC debate to that list of topics. Most debit cards offer every bit the same kinds of fraud protections and user perks as a credit card, all with the added bonus of keeping a real time track of available funds in your bank account. It takes a lot of mental gymnastics and even perhaps a little disingenuity to spin debit cards as inferior/more dangerous than credit.

 

[captmorgan]

Ugh, on this forum there always seems to be certain topics with a small but incredibly vocal minority offering bad advice to anyone who will listen.

Add the CC/DC debate to that list of topics. Most debit cards offer every bit the same kinds of fraud protections and user perks as a credit card, all with the added bonus of keeping a real time track of available funds in your bank account. It takes a lot of mental gymnastics and even perhaps a little disingenuity to spin debit cards as inferior/more dangerous than credit.

May I ask what debit cards offer the same perks?

I bank with PC and I get 2% back in points for all my purchases using their credit card so basically it works out that they buy my 1 video game every 4 months.

 

[elrechazado]

cash grab for retailers over banks. Just pick the giant corporations you like better.

 

[remnant]

Dont worry guys the free market will regulate itself when consumers protest the extra charges and take the debit card companies to court or when they stop doing business with them and look for alternative methods.

You mean like using cash?

 

[DurielBlack]

Consumers want cards to be regulated. Specifically, you want regulations to force banks to charge retailers less in fees. This will reduce the cost of goods, which are inflated due to the fees retailers have to pay banks and which they pass on to you through the cost of goods. Basically, banks are using cards to siphon money from consumers.

But since this is America, prices will just remain the same and banks will find some other "fee" to hit you with.

 

[Fernando Rocker]

Debit cards are for people who knows how to save and only spend their own money.

Credit cards are for people who wants things they can't afford in the moment.

Debit for life!

 

[Fernando Rocker]

Also... why are some of you guys saying that debit cards don't offer fraud protection and security and stuff?

My bank offers me the exact same security features as credit cards.

 

[GrotesqueBeauty]

cash grab for retailers over banks. Just pick the giant corporations you like better.

There are a fuckload more small retailers that accept debit than small banks that offer it. It's not really the same thing at all.

 

[XMonkey]

cash grab for retailers over banks. Just pick the giant corporations you like better.

Retailers please. Fuck the banks.

 

[RBH]

Oh boy, another Debit Card vs. Credit Card thread!


*takes a seat and grabs some popcorn*

 

[elrechazado]

Retailers please. Fuck the banks.

Those little mom and pop retailers like walmart and target will be so happy to be protected from the evil banks.

 

[RiccochetJ]

Also... why are some of you guys saying that debit cards don't offer fraud protection and security and stuff?

My bank offers me the exact same security features as credit cards.

Yea, but in most cases your money is still gone while the bank tries to figure things out. With a credit card, it's the banks problem.

 

[GrotesqueBeauty]

Those little mom and pop retailers like walmart and target will be so happy to be protected from the evil banks.

It's small retailers who are most heavily affected by these sorts of things though.