Will Banning Debit Card Fees Actually Cut Costs?
Senator Jenny Oropeza is pushing harder than ever to promote her new Senate Bill 933 that would ban debit cards fees as the vote is expected to take place next week. Some businesses are adding “unfair checkout fees” to all purchases made with debit cards, she claims. Current California law prohibits checkout fees made with credit cards but does not mention the use of debit cards. Taking that as a green light, retailers have been increasing prices by 20 to 30 percent on purchases made with debit cards. And with the increase of debit card use, especially with government Social Security, potential unemployment checks and disability payments all issued via debit cards, Oropeza says these fees hit the low-income individuals the hardest.