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Why Banks Love Debit Cards Again

Thursday, March 28, 2013 - 3:22 PM
Debit cards were supposed to be toast. The industry started writing their obituary when financial reform targeted overdraft fees and interchange or “swipe” fees, which had made debit cards extremely lucrative for banks. So why is it that banks are now pushing debit cards like never before?

A couple years ago, the banking industry warned federal regulators that reform efforts could lead to both an increase in fees and a decrease in debit card usage.

... As it turned out, none of that really happened. After an initial retrenchment, banks now are marketing debit cards as aggressively as ever. They’re even adding back debit card rewards programs, which many had discontinued in anticipation of the hit the regulations would deliver to their bottom lines.

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The article also states that technology-loving millenials are being targeted by banks, who are encouraging the use of debit cards for small purchases throughout the day, and of online banking, mobile banking and text banking to track their spending. 
pearlbrownpearlbrown1,474 posts since
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