Some banks would actually pay you to use debit cards more often
By kingparker
@kingparker (9673)
United States
August 9, 2010 4:45am CST
There were some banks would actually reward you with higher interest on your checking account if you use their debit cards more often within a month, like 10 to 12 times. But when you pay with your debit card in the merchant, you have to claim your payment to be credit, not debit. So, the bank can charge the merchant more on transaction fees. In return, they will pay you 2 to 3 percent interest in your checking account. That is one way to raise up money from the bank to the merchants. So, if you shop a lot, you might consider this offer from your bank.
1 response
@echomonster (2225)
• Greenwood, Mississippi
9 Aug 10
Since interest rates for savers have hit rock bottom, reward checking accounts like you're describing seem to have become more popular. They're not really good for me as I'm not a big spender, but I know some people have gotten good results from them. Actually, so many people were exploiting these type of accounts that more restrictions have been placed on them lately (for instance people would get their 10 or so charges by buying 10 different items for a dollar or less!).
@kingparker (9673)
• United States
9 Aug 10
That is the truth. The merchant has to place higher price on the items for sale to counter that transaction cost. It might be cost the same for a customer like us who use the debit cards.
