Banks are in business to make money. That said, they seem to do a pretty good job of it - as long as the feds stay out of the picture. Banks are not a pure free market vehicle. They are regulated, and entry in the market is highly controlled. Deposits are insured, interest rates paid and charged are fairly uniform, and banks have the fed as their sugardaddy.
Remember the days of banks competing for your business with free toasters or glassware, premium depost rates, and free checking?
These had long ago disappeared when TARP came along and forced banks to accept money they didn't need - which they didn't lend out anyway. After all, our banks couldn't fail - which they wouldn't have anyway. Then came Dodd-Frank which is harming the consumer much more than ever envisioned - I certainly hope they didn't plan for all this fallout.
Repeal Dodd-Frank immediately.
Now banks, lead by Bank of America with Wells Fargo and Chase right behind are going to charge consumers for using a debit card - which is really a convenience for the banks.
A debit card means that funds are withdrawn immediately from the consumers' accounts, merchants receive instant credit, no paper checks have to be handled or processed, and no one (merchant or consumer) even has to step foot inside the bank to complete a transaction and have it funded. All to the benefit of everyone - consumer, merchant, and the bank.
Banks charge merchants a swipe fee, a monthly processing fee, and a transaction fee for using debit and credit cards. Now they want the consumer to ante up as well. OK, so Dodd-Frank pared back the amount of the swipe fee. There are other ways of recouping the potential lost revenue without charging consumers for a process that seems to help the banks more than anyone else. Maybe downsizing staffing or restructuring other fees. Maybe just living with it. After all, ATM fees and ISF check fees have already increased.
Too bad banks don't have any real compeition except for credit unions. Maybe its time for the credit unions to flex their muscle and garner more of the banking business. In the meantime get rid of Dodd-Frank to reverse some of the damage now being inflicted.
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For more information on my coaching and educational programs and services, visit my website or go to my other blog "Steve Hoffacker's Home Sales Insights" for additional sales tips, insights, and commentary. Listen to my free podcast messages at "Steve Hoffacker's Happenings."
Steve Hoffacker - Consultant, Coach, Author, Blogger, Photographer, Motivator, Podcaster, Teacher, & Strategist - for Realtors, Real Estate Sales Professionals, Home Builders, New Home Salespeople, Entrepreneurs, Small Business Owners, and Independent Sales Representatives.
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