http://www.vancouversun.com/business/debit+cards+credit+cards+expect+higher+prices/2342124/story.html
Summary:
Recent studies state that with the hidden fees placed on credit cards, it will soon occur with debit cards as well. Last year, the hidden card fees racked up to 4 billion dollars. Even though the charges are as little as a few cents per transaction, it adds up fairly quickly. Merchants that accept the gold,silver, and premium cards are also charged with more hidden fees. These merchants cannot do much because everyone needs a credit card in today's modernized society. With debit cards also being successful, people are worried for the hidden charges that are going to be placed on them as well. The Finance Minister Jim Flaherty, commented that there will be a voluntary code that will not let the credit card companies automatically upgrade it for the owners.
Connection:
The hidden card fees is no doubt a problem for the many consumers that use debit and credit cards. With these cards being relatively portable and divisible, it really forces consumers to use them for anything they purchase. When a transaction occurs using a debit card, the money is taken immediately out of one's bank account. However, if the account does not contain enough money, the transaction will not take place. This makes it perfectly safe to use this form of money. These companies take advantage of that and force the consumers to pay these hidden fees.
Reflection:
I believe that both the consumer and companies have a responsibility in these hidden fees. Consumers need to understand what they are paying, and the companies need to stop tricking people into these invisible fees. Flaherty, as the Finance Minister, needs to continue to keep his word about the voluntary code. There should be a regulation if the code is not adopted. This restricts companies from upgrading consumers' debit and credit cards for no reason other than to increase the hidden fees. There are many consumers that are dragged into upgrading to those new cards where they have to pay even more hidden fees. If this continues to go on, they will only be losing more and more of their money.
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I agree that consumers and companies have a responsibility in these hidden fees. Companies should always provide info about things that consumers may receive as charges. This would help consumers understand what they are being charged for, instead of throwing the a bunch of fees and not explaining why they are being charged. Consumers on the other hand, should also pay attention to whats going on, and not always assume that everything is covered. This would at least show consumers that they aren't being charged for no reason.
ReplyDeleteI also agree with Ellick that consumer and companies have a responsibility in these hidden fees in credit cards. Consumers would reduce using either debit or credit cards because they wouldn't want to pay hidden fees for both ways which could cause them to pay a lot in the long run. Also, consumers should have the choice of upgrading their credit cards or not to have an increased in hidden fees. I also agree with Ellick on how consumers should be more aware of what they are paying for. Many people assume deals they might get, but they never contact the company to ask. Overall, hidden fees should be shown to be fair to consumers.
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