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.
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.
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)
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.