PHILADELPHIA (CBS) – You may need to think twice soon before swiping that debit card, some banks are considering placing a spending limit on your debit card reports that limit could be as low as $50 or $100 per day and it could happen as early as this year.
Chief Payments Officer at Fox Chase Bank Kerry Lynch says this is directly tied to the Wall Street reform legislation and explains why some banks are looking at this now.
“The Durbin Amendment to the Dodd Frank Act proposes to reduce the amount of revenue that banks will be getting from debit card transactions so banks are looking at creative ways to try to make the debit card still work from a profitability standpoint.”
Lynch says Fox Chase is not looking at this option right now the regulations affect larger institutions rather then state smaller banks. His advice for consumers is to watch the disclosure statements your banks send you regarding your cards and “and as much I hate to say this but cash may be a good alternative for some of the transactions that customer use debit cards for.”
And Lynch advises you to shop around for a bank that doesn’t have these limits.
Reported By Michelle Durham, KYW Newsradio.