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View Diary: Bank of America CEO: We have a 'right to make a profit' (285 comments)

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  •  A little correction to put things in context (3+ / 0-)
    Recommended by:
    davboyce, hayesb, white blitz
    You know how Bank of America is going to start charging you $5 a month to use your own money?

    This is jut a war between the Retailers and the Banks fought as usual on the backs of American consumers.

    Bank of America is going to start charging $5 only if you use your debit card to make purchases using the Visa or Mastercard networks.

    These companies (Visa and MC) charges BoA for each transaction  cleared through their networks (swipe fees).

    Until recently, BoA (and other banks) covered these fees by charging the merchants (such as WalMart, Target, Supermarkets, etc) a transaction fee. The merchants in turn rolled these fees into the final price of the purchased items.

    Now, with the new regulations (that were pushed with the help of the NRF lobby) there is a limit on the amount BoA can charge the merchants. The retailers pushed the idea the  that this will translate into lower prices at the stores.

    However, BoA still needs to pay Visa and MasterCard.  
    So now BoA tries to recoup these fees directly from the customers.

    On the other hand, has anyone noticed prices going down in their local supermarket?

    "One might almost call it poetic, if poetry weren't the last refuge of the bearded, cricket hating sodomite."

    by The Revenge of Shakshuka on Thu Oct 06, 2011 at 01:48:33 PM PDT

    •  they're charging us to use our own money (3+ / 0-)
      Recommended by:
      zaka1, trumpeter, wsexson

      I say fuck context.

      Do you know why they call it the American Dream? Because it only happens when you're asleep.

      by Visceral on Thu Oct 06, 2011 at 02:08:10 PM PDT

      [ Parent ]

      •  No, they are charging you a convenience fee. (3+ / 0-)

        Pay with a check or with cash, you will not be charged a dime. You know, like the good old days, before smartphones and computers.

        If you want the convenience to use plastic when you buy something, then  BoA say that you should pay for the clearing service.

        I personally believe it is a boneheaded move by BoA, but if making profit is not a right, then using plastic is not a basic civil right either.

        "One might almost call it poetic, if poetry weren't the last refuge of the bearded, cricket hating sodomite."

        by The Revenge of Shakshuka on Thu Oct 06, 2011 at 03:32:11 PM PDT

        [ Parent ]

      •  I have a BofA account, and I have never been.. (3+ / 0-)

        charged to use my money, if you don't want to pay the fee, use a credit card or go to the ATM and get cash. They are offering a service and they are charging a fee, that is capitalism at its simplest. Before the merchants covered the cost, but now the account owner does and in turn you might see lower prices at stores, it really is a zero sum gain, since BofA employees don't work for free.
        Right now it's an above board fee for a service, like buying anything else in the world.

    •  Yes, using debit cards cost us nothing (0+ / 0-)

      until Congress sided with the retailers on swipe fees. A five-year old could have predicted that the banks were going to recoup the loss of fees on the consumers back. Same as when Congress regulated credit cards, causing the banks to raise cc rates before the regulations took effect. My bank is charging the $5 starting next month-even before BoA is. Sometimes I long for a "do-nothing" Congress.

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