Banks consider $50 debit card spending cap - KFVS12 News & Weather Cape Girardeau, Carbondale, Poplar Bluff

Banks consider $50 debit card spending cap

(CNN) - You probably use your debit card for purchases big and small. But, your debit card may soon be denied for purchase greater than $100, or even as little as $50.

Sources tell CNN that JP Morgan Chase is considering a limit on the dollar amount of debit card transactions.

It all comes down to the fees banks charge retailers every time you swipe.

Right now, every time you use your debit card, banks charge the store an average of 44 cents.

When the new financial reform laws go into effect in July, banks will only be allowed to charge 12 cents a swipe.

That could cost JP Morgan Chase a billion dollars a year.

The 12 cent fee covers the cost of the transaction but banks claim they use a lot of the revenue to cover the cost of fraudulent charges and identity theft.

With the lost revenue from the cap in fees, banks say they'll have to impose a limit of $50 to $100 per purchase.

It's just one of many changes banks are testing in order to deal with new regulations. Others include charging for checking, increasing ATM fees and getting rid of rewards programs altogether.

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