Free Visa -- and MasterCard, Too

Banks say they'll eliminate free credit cards in response to reform legislation limiting their ability to gouge those addicted to credit. I have two simple responses, each a retread of a rejection that succeeded the first time it was used.

The first is "make my day."

The second is, "hell, no we won't pay."

Credit cards are a convenience I rely on. So are cash-dispensing ATMs. I don't pay fees for the latter and they haven't revoked my privileges. I won't pay for my credit cards, either, and I'm confident that I'll be able to continue to use at least a few of the dozen or so I've been awarded over the years - and probably get cash back or miles as well.

Some say the banks rule and we'll have no other option. We'll see.

On the other hand, some predicted we'd be paying for all news we get from the web, but that hasn't happened yet despite the fact that the newspapers that helpfully provide it seem to be experiencing pain at least equal to what the banks anticipate - and haven't even been offered Federal bailout money yet.

I think that credit cards, like information (and "people everywhere" as the Young Rascals pointed out) just want to be free. And we can keep them free by just adopting the (Nancy) Reagan philosophy and simply saying no when the banks ask for an annual fee.

There's a word that describes people who spend money - whether they use cash or cards. That word is customer. And in times like this, when buyers talk, it is probably prudent for sellers to listen. There are a few words that describe banks well. Credible is not one of them.

The customer may not always be right, but he does have some clout if he chooses to exercise it. I know what I'm going to do and hope that enough others have enough sense to call the banks' bluff on this one. As MasterCard might say, credit cards buy experiences that are priceless. The cards should be, too.

Comments

[TJCole]

2/3rds of our economy is consumer spending and these credit card companies are constricting consumer spending with their blood sucking usery which is still going unaddressed...

So as we attempt to stimulate the economy they the banks, bansters are constricting it...it's a form of asymmetrical economic warfare against the American people..and Consumers..!

[robin50]

So we are suppose to be good little consumers and customers again? Idon't think so. Hasn't the typical American yet learned spending themselves into oblivian just causes more debt?

[Paul]

All that is left is for the banks to charge you for a life insurance policy equal to your outstanding balance - then put out contracts on those who fall too far behind in their payments.

[sonnybrakes]

It is probably being considered.

[KillTheMessenger]

There is a word for people who spend more than they make: bankrupt.

Just say no when someone offers you credit at any terms.

[RabidRightRebel]

On a recent trip to Europe when I used my credit card I was asked "debit or credit?". Over there it is a perfectly simple process to pay realtime out of a bank account without having to use a credit card balance and risk running up a balance that can not be paid at the end of the month.

Compare that practice to the usual question in America "do you want cash back?". This is clearly an method of getting people to borrow on their credit cards and increase their balance above that which they can pay at month end.

Given this it is not suprising that Europeans have much less credit card debt that Americans.

If you want to reduce outstanding balances maybe eliminating the cash back option would be a good first step.

[vippy]

Europe does banking in a whole different manner. I was surprised when I came here and saw
that they charge you for going over your limit here. People in Europe did not write bad checks either and they did not have to deal with exhorbitant fees on bad checks either. They are better educated and don't face the same problems we do here. It is much simpler there. I never wrote
a check in my life. I simply budget myself between paydays and I use credit cards sparingly.

[Donkslayer]

I think you just made up an example that has nothing to do with the problem and is nonsensical at best.

Pretty much everywhere you go now, you're asked or displayed "Debit or Credit."

I have never been somewhere that is willing to give you "cash back" on a credit card; they're willing to with a debit card, because the CC companies lower and eventually eliminate the store's user fees after a particular $$ amount of transactions.

There are a lot of issues with the credit card companies and shady practices...but your example is not one of them.

[tailgateshirts]

IDK where you live, but I am asked both of those questions normally "Debit or Credit" and "Do you want cash back"

Not all places do cash back, and its helpful sometimes to avoid atm fees, or convenience factor.

Dont act like everything is gear towards making people drain themselves, they do that plenty with their rates as it is