Sometimes Less is Less

Instances when it's best to spend a little more to save in the long-run.

Banks Are at It Again

The other day we mentioned how the cost of using debit and credit cards is becoming too much for some small business.  It now looks as though it may soon become too costly for the consumer.  That’s you and me.  CNNMoney.com highlights some of the increase costs that we may expect if The Federal Reserve gets Congress to agree to its request for capping these “swipe fees” at 12%.  Swipe fees are that charge mentioned previously that business pay every time they run your card through the reader.  Since the banks are going to make their money one way or the other, this underscores our suggestion on using the Cash is King philosophy.  Banks are threatening to increase ATM to as high as $5 for non-customers (you’ll also likely have a charge from your own bank), increase late fees up to 30%, limiting us to purchases as small as $50 on debit cards and if you have any rewards program on your debit card, consider it gone with the wind.  Banks claim that they need these fees to run their business and address fraud issues and Washington is trying to save us.  It seems the more they try to save us, the more costly it gets.  Go to your ATM as little as possible to withdrawal the money you need to get you from pay check to pay check or even consider going to your bank and get your money directly from a human.  Using cash will help you and your favorite small business. 

Banks' wrath: High ATM fees! 30% APRs! Vanishing rewards!

Bank Debit and Credit Card Fees - A Sink Hole for Us All

Although we are not opposed to any business, including big banks, making a profit, maybe it is time for the American consumer to rethink the use of plastic on every transaction. With the fees being charged by card providers sucking billions out of the wallets of consumers and merchants, Cash is King certainly is a principle that can help us small folks. As the linked article below points out, some merchants would rather give merchandise such as a banana away then swipe a card for small transaction. According to Merchantseek.com a typical PIN debit card transaction costs the merchant between .35 and .55 cents. On transactions less than $10, the merchant is paying a large percentage of the total bill out in fees. Who ends up paying those fees? We do. They pass that cost on to us. So why not give the merchant a break and in turn give yourself a break. Pay with cash on small dollar transactions especially. Your merchant will appreciate it and the beneifits will be passed on to us in slower price hikes. Swiped: Banks, Merchants And Why Washington Doesn't Work For You