The Fee Hand of the Market 0
From a story on banks’ reducing their overdraft fees:
That’s the sandwich that, to me, came to epitomize the dangerous presumption that the market will always take care of itself, and its corollary: that banks and other businesses can do no wrong if their intentions are laid out ahead of time in the fine print.
The high-priced hoagie came from a Wawa, but the convenience store chain wasn’t to blame. It was a $4 sandwich, to be precise, plus a $31 overdraft charge – triggered when college student Jeremy Spiller bought it with his Visa debit card and his bank balance fell 11 cents short.
Banks claim that they approve payments and then slap customers with overdraft fees, rather than simply declining the purchase, so as to better serve their customers.
It is possible to say, “Hey, Bank, I can’t keep track of all the coffee I buy on my debit card; just decline the payment.” But you have to opt-out of the fee-generation machine.
Serving their customers.
Up on a platter.
