Category: Debit Cards

Debit cards are payment cards linked directly to a consumer’s checking account, allowing users to make purchases or withdraw cash using the available funds in their account. Unlike credit cards, debit cards do not allow borrowing and require sufficient funds in the account for transactions to be approved. Associated fees may include overdraft fees if users attempt to spend more than their balance, foreign transaction fees for international purchases, and sometimes ATM withdrawal fees if using an out-of-network ATM. Fraud involving debit cards can occur through methods like skimming, where criminals capture card information at ATMs or point-of-sale terminals, phishing schemes to trick users into providing card details, or unauthorized access to the card or account, leading to unauthorized transactions. To protect against fraud, consumers should monitor their accounts regularly and use secure, trusted machines and websites for transactions.

CFPB-PR-240827-1

Agency Reports Categories CFPB CFPB-24 CFPB-2408 Debit Cards Federal News Sources

CFPB-PR-240827-1 (Aug. 21, 2024)

CFPB Report Finds Large Retail Chains Charging Cash-back Fees to Customers Using Debit and Prepaid Cards – Closures of banks have created conditions for major dollar store chains to charge for cash back

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) published a new report finding Americans are paying tens of millions of dollars in fees to access their own money when getting “cash back” at large retail stores when making a purchase with a debit or prepaid card. These cash-back fees are occurring against the backdrop of bank mergers, branch closures, and prevalence of out-of-network ATM fees that have reduced the supply of free cash access points for consumers.

CFPB News Release - CFPB-PR-240827-1

CFPB-PR-240827-1

Date: Aug. 27, 2024

Accessed: Aug. 31, 2024

Source URL: https://www.consumerfinance.gov/about-us/newsroom/cfpb-report-finds-large-retail-chains-charging-cash-back-fees-to-customers-using-debit-and-prepaid-cards/

Categories:

PDF Notes:

  • The PDF viewer below disables the links inside the PDF file.
  • The PDF file may be downloaded if you wish.
  • All links within the PDF Download are fully functional.
CFPB-PR-240827-1