A recent study says that banks are expected to lose up to $14 billion from the reduction of interchange fees.
So how are they going to make up for the loss revenue? The likely candidate: Offloading more costs onto consumers.
A CardHub.com analysis finds that large banks will make up for lost revenue by increasing monthly fees and minimum balance requirements and making debit card reward programs less appealing.
Consumers as a whole won’t take on more costs. Instead, some will pay more and others will pay less. Regulation redistributes the costs in a more socially responsible manner.
“Regulation redistributes the costs in a more socially responsible manner.” Please excuse me while I reach for the barf bag.
Ever since Dodd/Frank, the consumer has been pummeled by higher banking fees and less rewards points. Banks have virtually eliminated free checking. Getting a loan for anything other than overpriced real estate is next to impossible. There is a fee for just about everything now. And don’t even get me started on the credit card crooks.
Exactly Mr. Ham….from those according to their ability, to those according to their needs.