If you want to know what's next just do some traveling. Anyplace but here in the USA you will find debit cards and such everywhere.
So why not here? Because the banks here are making a nice 3-5% on EVERYTHING we do, usually paid by the merchant. It's a 3% tax right into the banks pocket.
Don't expect to see any of these futuristic (meaning 20 years ago everyplace else) technologies in the US anytime soon. Powerful rich people will not give up their $300B yearly drain on our wallets easily.
So in other countries, banks don't charge anything for issuing debit cards, maintain the databases, routing the funds, etc.? I find this a bit hard to believe.
Why should banks charge you for debit cards, or electronic routing of payments? Their whole business is runs on databases anyway, so the marginal cost of adding this functionality is virtually nil. In fact it saves money. It costs them a lot to hire tellers, and handle cash, which must be counted, packaged, shipped, and stored. So the more they can encourage you to *not* use cash, the better it is for them.
Unfortunately, they've also discovered they can get away with charging service fees at ATMs. So this is a double whammy of profit for them, and a double whammy ripoff for you. They replace the teller with a cheaper machine, then charge you for the "priveledge" of using it.
Here's a secret, though -- when you need cash, just go to a grocery store and use your ATM to buy something you need anyway, and get some extra cash back. It doesn't cost you anything extra. If you didn't need anything, then you at least get a soda or something for your $1.50, instead of nothing at the ATM!
I don't understand why people patronize traditional banks at all. Mine has no regular locations for customer services -- I make my deposits through the mail or electronically, make payments with checks or debit card, and manage the account either online or by phone -- all for free. They even pay interest, and rebate up to 4 ATM charges a month. It's FDIC insured and everything. I don't understand why people waste their time "going to the bank." And I certainly don't understand why banks waste all that money on high street real estate.
So in other countries, banks don't charge anything for issuing debit cards, maintain the databases, routing the funds, etc.? I find this a bit hard to believe.
Depends on your bank and country, but at mine, Handelsbanken [handelsbanken.fi] in Finland, I pay nothing for my:
accounts themselves
debit card
ATM withdrawals in Finland (any ATM) and Sweden (Handelsbanken ATMs)
online banking
electronic money transfers (within Finland, soon to be all the EU as well)
service at physical bank branches (I know my teller by first name)
And no, this doesn't require assets of 15 kazillion, I'm just an ordinary customer.
I do pay a small yearly fee (less than 50) for my credit card, and a small commission on withdrawals outside Finland/Sweden. The bank makes its share through interest in my checking account (not that Finns ever use checks...), for managing my mutual funds and interest from loans (not that I have any at the moment).
And yes, this kicks ass. Handelsbanken has been signing up a lot of people since the thousand-pound gorilla of Nordic banking, Nordea [nordea.fi], started jacking up its fees.
In the UK we are paid to give our money to the bank for safekeeping.
There are no direct charges if you stay in credit, infact the bank pays you interest (Anything from 0.1% to 3%) and that's on a current account (You'll know it as a checking account)
Some accounts charge a fee per month or year but this usually covers extras such as insurance or "Gold" service - but these are in the minority.
Personally I only pay charges when I exceed my overdraft. The bank happily send me statements, provide on line and TV banking, telephone banking, counter service, provide cheque books, debit cards and even transfer money instantly between accounts in the same bank group - all free of charge.
Even Citibank does this in the UK.
"Be there. Aloha."
-- Steve McGarret, _Hawaii Five-Oh_
Every other country has solved this. (Score:2, Insightful)
So why not here? Because the banks here are making a nice 3-5% on EVERYTHING we do, usually paid by the merchant. It's a 3% tax right into the banks pocket.
Don't expect to see any of these futuristic (meaning 20 years ago everyplace else) technologies in the US anytime soon. Powerful rich people will not give up their $300B yearly drain on our wallets easily.
Re:Every other country has solved this. (Score:3, Interesting)
Cheaper than paying tellers, or handling cash! (Score:2)
Unfortunately, they've also discovered they can get away with charging service fees at ATMs. So this is a double whammy of profit for them, and a double whammy ripoff for you. They replace the teller with a cheaper machine, then charge you for the "priveledge" of using it.
Here's a secret, though -- when you need cash, just go to a grocery store and use your ATM to buy something you need anyway, and get some extra cash back. It doesn't cost you anything extra. If you didn't need anything, then you at least get a soda or something for your $1.50, instead of nothing at the ATM!
I don't understand why people patronize traditional banks at all. Mine has no regular locations for customer services -- I make my deposits through the mail or electronically, make payments with checks or debit card, and manage the account either online or by phone -- all for free. They even pay interest, and rebate up to 4 ATM charges a month. It's FDIC insured and everything. I don't understand why people waste their time "going to the bank." And I certainly don't understand why banks waste all that money on high street real estate.
Re:Every other country has solved this. (Score:2)
Depends on your bank and country, but at mine, Handelsbanken [handelsbanken.fi] in Finland, I pay nothing for my:
- accounts themselves
- debit card
- ATM withdrawals in Finland (any ATM) and Sweden (Handelsbanken ATMs)
- online banking
- electronic money transfers (within Finland, soon to be all the EU as well)
- service at physical bank branches (I know my teller by first name)
And no, this doesn't require assets of 15 kazillion, I'm just an ordinary customer. I do pay a small yearly fee (less than 50) for my credit card, and a small commission on withdrawals outside Finland/Sweden. The bank makes its share through interest in my checking account (not that Finns ever use checks...), for managing my mutual funds and interest from loans (not that I have any at the moment).And yes, this kicks ass. Handelsbanken has been signing up a lot of people since the thousand-pound gorilla of Nordic banking, Nordea [nordea.fi], started jacking up its fees.
Cheers,
-j.
Re:Every other country has solved this. (Score:1)
There are no direct charges if you stay in credit, infact the bank pays you interest (Anything from 0.1% to 3%) and that's on a current account (You'll know it as a checking account)
Some accounts charge a fee per month or year but this usually covers extras such as insurance or "Gold" service - but these are in the minority.
Personally I only pay charges when I exceed my overdraft. The bank happily send me statements, provide on line and TV banking, telephone banking, counter service, provide cheque books, debit cards and even transfer money instantly between accounts in the same bank group - all free of charge.
Even Citibank does this in the UK.