Are ATM Debit Card Trasnsaction Fees A Consumer Rip-Off? What Can We Do?

[Wally]

As someone who has worked registers for many years, it still irks me when someone gives me a debit card and tells me to run it as 'debit', DUH!, there is no other way. Also remember that not all transaction locations have the pin number entry. Thus, you buy something at Disneyland in the stores, and you will never have the option to input your pin number for a transaction- because the registers are not set up that way. Alot of businesses are like that.

[Ride Warrior]

As someone who has worked registers for many years, it still irks me when someone gives me a debit card and tells me to run it as 'debit', DUH!, there is no other way. Also remember that not all transaction locations have the pin number entry. Thus, you buy something at Disneyland in the stores, and you will never have the option to input your pin number for a transaction- because the registers are not set up that way. Alot of businesses are like that.

Interesting... This peaks my curiosity. I if a service fee is added at some of the transaction locations that have no pin number entry...a fee that is hidden and unannounced and not posted.

[DisneyDan24]

Taco Bell by me charges .69 cents, but KFC is $1.99 !!!

[Alchimedes]

I was at a KFC over the weekend that charged a fee to use a freaking credit card. I hate it when some retailers want to charge you extra to use credit. I mean...come on. It's 2 percent. It's not gonna kill you to let the customer use credit!

Not all credit companies are a 2% - 4% rate, American Express is around 6% and higher some places.
It's just plain greed. Now one should have to pay an extra fee. The nice thing is my wife and I bank with a credit union, so we get a little break from the double fees.
- We never have to pay a fee from the credit union for using another companies ATM OR Debit machine, the only fee we pay is the bank the card is used at.
- If we use an ATM at another credit union that is in the same network, there are no fees on either end.
-So far we have never had any major issues with other checking fees or transaction fees for transfers, or other banking services.
The Orange County Hyatt hotel has an ATM that charges a whopping $$4.00 fee!

[lazyboy97O]

As someone who has worked registers for many years, it still irks me when someone gives me a debit card and tells me to run it as 'debit', DUH!, there is no other way. Also remember that not all transaction locations have the pin number entry. Thus, you buy something at Disneyland in the stores, and you will never have the option to input your pin number for a transaction- because the registers are not set up that way. Alot of businesses are like that.

Is it a debit card or a checkcard? All "run as debit" means is that the customer wishes to verify the transaction with his PIN instead of his signature.

[NickCharles]

Is it a debit card or a checkcard? All "run as debit" means is that the customer wishes to verify the transaction with his PIN instead of his signature.

"Checkcard" is a marketing term for Debit Card. I think you mean to ask if it is an ATM Debit card.

[Darkbeer]

First off, the basic contract MasterCard, Visa, AmEx and other credit card companies have with merchants is that they are NOT allowed to charge a surcharge for purchases. On the other hand, the merchant can offer a discount for paying with cash.

http://en.wikipedia.org/wiki/VISA_(credit_card)

Some outstanding rules of the association include rules about how a cardholder must be identified for security, how transactions may be denied by the bank and how banks may cooperate for fraud prevention, and how to keep that identification and fraud protection standard and non-discriminatory. One notable rule is that no merchant accepting Visa, whether a mom-and-pop store or a government body like a university, may establish any minimum purchase, maximum purchase, or surcharge for any Visa (credit) transaction (except for in Australia and the UK, where recent legislation in each has allowed retailers to apply a surcharge on any credit card transaction, VISA or otherwise). They can establish surcharges for debit transactions (although lower fees on debit card transactions means that merchants typically encourage use of debit cards by surcharging more for credit cards, where allowed). Enforcement of the rules, however, is by individual banks, and they may or may not know the rules well. So, a restaurant may charge a surcharge or minimum, which may at first be upheld by the bank in many cases, unless the consumer knows the association rules well. Other rules govern what creates an enforceable proof of authorization by the cardholder (starting from a signature or PIN), and continuing to lower levels of proof such as a shipment accepted or a statement by the consumer.

Most merchants don't offer a cash discount, instead building in the fees they have to pay as a cost of doing business. For example, the merchant only gets $96 for a $100 charge.

One Major Gas Station here in SoCal ARCO made a decision years ago, don't take credit cards, but instead offer a lower price to everyone. This is one of the places that did add Debit Card terminals, and charge a 45 cent fee if the customer decided to pay for the convenience of using the card.

I have no problem with policies like that, where they are clearly marked and folks have a choice. Nobody is forcing you to pay the fee, if you don't like the policy, go somewhere else, though most of the time you find the current low priced gasoline, it is an ARCO in SoCal.

Slightly off-topic, but there is nothing that prevents an independent operator of an ARCO gas station to take credit cards. A few do, including the one at Ball and Disneyland Drive. The owner decided the vast amount of out of town visitors made it worth his while to charge a few cents more for a gallon of gas, and take the credit cards. So at this station, make sure and pick the "Pay Here Credit" option on the pump, not the Debit option.

[Alyssa3467]

When a Guest asks me if we take debit cards, I tell them no, and explain that we only take Visa, MasterCard, American Express, Discover, and JCB. Most international Guests that ask me seem to understand the distinction between a PIN-based debit transaction and a signature-based credit transaction. Domestic Guests don't seem to be quite as knowledgable. I've seen people put away their ATM Check Cards with a Visa or MasterCard logo after they ask "Do you take debit cards?" and I tell them no. I've had others hand me their card, tell me "debit," and take it back after I point to the Visa or MasterCard logo and tell them I can take the card, but I have to run it as a Visa or a MasterCard because we don't accept debit cards. I've also seen Guests, mostly Canadians, hand cashiers who tell them we do take debit cards (based on their misunderstanding of what a debit card is) a debit card lacking any credit card company logos, only to find that the registers won't accept the cards.

As a side note, I've shopped at some retailers where if you swipe an ATM Check Card, it defaults to providing you with a PIN pad, and if you hit the "Cancel" key, it gives you a signature panel. If you have a debit card, it gives you a PIN pad, and spits the card back out if you hit "Cancel."

[Ride Warrior]

- We never have to pay a fee from the credit union for using another companies ATM OR Debit machine, the only fee we pay is the bank the card is used at.
- If we use an ATM at another credit union that is in the same network, there are no fees on either end.

I have a credit union debit card as well. It is true that banks charge all kinds of fees for services offered for free at cu's. Thanks for bringing this valuable point to everyone's attention, Tic Toc. Congratulations on recently becoming a new father as well!

First off, the basic contract MasterCard, Visa, AmEx and other credit card companies have with merchants is that they are NOT allowed to charge a surcharge for purchases. On the other hand, the merchant can offer a discount for paying with cash.

http://en.wikipedia.org/wiki/VISA_(credit_card)
.

It's to bad that the contract doesn't extend to the agreements that merchants make with companies that suppy debit transaction validation machines. These greedy fees would come to a halt If the banking institutions forbid (by contract) merchants installing validation machines that charge debit fees. Please remember, Profits from these fees go to the companies that provide the machines...not the merchants.

I've seen people put away their ATM Check Cards with a Visa or MasterCard logo after they ask "Do you take debit cards?" and I tell them no. I've had others hand me their card, tell me "debit," and take it back after I point to the Visa or MasterCard logo and tell them I can take the card, but I have to run it as a Visa or a MasterCard because we don't accept debit cards. I've also seen Guests, mostly Canadians, hand cashiers who tell them we do take debit cards (based on their misunderstanding of what a debit card is) a debit card lacking any credit card company logos, only to find that the registers won't accept the cards.

If stolen, debit cards with logos can be easily used as credit transactions by thieves. This is why many people prefer not to have a card with a logo. It's as if a number of businesses out there care more about their profits than allowing customers to be able to use safe cards.