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.
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.