# Why do Banks insist on issuing Visa Debit Cards even if you dont want one?



## daheff (16 May 2013)

Why are banks insistant that they will issue you with a visa debit card (Even when you say you dont want one)?

I recently opened an account with a bank (which as least stringent free fees criteria- hint hint).

I told them I didnt want a visa debit card, ticked the box for no card, yet the person opening the acount told me that i would get one anyways. I wouldnt be charged the govt fee so long as i didnt use it as a visa debit card!

I personally dont believe this, but anyways, my question is why do they insist on providing them when people dont want them? 

Do they get a fee off visa every time they issue one (Even if its never used)?


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## Time (16 May 2013)

You are hit with a €2.50 ATM govt duty anyways. 

They are issuing them now for all accounts as the old system they had is no longer compatible with SEPA. 

Cut up the card if you don't want it.


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## DMcL1971 (16 May 2013)

Certain banks, such as Ulster Bank, issue you with a card as it is required for security verification in conjunction with a card reader when doing certain things online. The card has three functions, ATM, Debit Card and ID verification. If, during the year, you make an even one ATM withdrawal you will be liable to pay 2.50 stamp duty. If you also use the card even once for POS or online purchase you will be liable for a further 2.50. If however you only use the card in conjunction with your card reader you will not be charged any stamp duty.

http://www.revenue.ie/en/tax/stamp-duty/leaflets/stamp-duty-financial-cards.html

Because the vast majority of people want a card, it is actually easier for their automated system to issue you a card rather than create an exception for the small number of customers who do not want one. Of course this does have the added advantage for them that you might be tempted to use it if they issue it.


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## daheff (17 May 2013)

Time said:


> You are hit with a €2.50 ATM govt duty anyways.
> 
> They are issuing them now for all accounts as the old system they had is no longer compatible with SEPA.
> 
> Cut up the card if you don't want it.


 
I have no problem with the ATM govt fee. I want an ATM only card...they issue a dual card (Even though the literature asks do you want one or not!!) -so cutting up the card wont work.


The banking/ATM system is compatible with SEPA...I dont know why you think its not? Visa debit cards are nothing to do with SEPA


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## daheff (17 May 2013)

DMcL1971 said:


> Because the vast majority of people want a card, it is actually easier for their automated system to issue you a card rather than create an exception for the small number of customers who do not want one. Of course this does have the added advantage for them that you might be tempted to use it if they issue it.


 

the vast majority of people wanted the cards while there are no transaction charges...now that the banks have reintroduced fees for most people, people are finding that they are paying fees that they wouldnt have to if they just withdrew cash. 

Banks would rather people use debit cards to reduce the need for physical cash, but yet want people to pay for each transaction (most of which are small)- whereas withdrawing a weeks worth of cash is one transaction fee for people.


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## murphaph (17 May 2013)

DMcL1971 said:


> Certain banks, such as Ulster Bank, issue you with a card as it is required for security verification in conjunction with a card reader when doing certain things online. The card has three functions, ATM, Debit Card and ID verification. If, during the year, you make an even one ATM withdrawal you will be liable to pay 2.50 stamp duty. If you also use the card even once for POS or online purchase you will be liable for a further 2.50. If however you only use the card in conjunction with your card reader you will not be charged any stamp duty.
> 
> http://www.revenue.ie/en/tax/stamp-duty/leaflets/stamp-duty-financial-cards.html
> 
> Because the vast majority of people want a card, it is actually easier for their automated system to issue you a card rather than create an exception for the small number of customers who do not want one. Of course this does have the added advantage for them that you might be tempted to use it if they issue it.


UB will issue a dummy card that only works in the card reader if you want that instead of a debit card.


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## Jim2007 (17 May 2013)

daheff said:


> Banks would rather people use debit cards to reduce the need for physical cash, but yet want people to pay for each transaction (most of which are small)- whereas withdrawing a weeks worth of cash is one transaction fee for people.



Yes but the day will come and I expect it is not too far away, when you will be discouraged from making cash payments!  

In the past six months here in Switzerland I've seen a big change over to card transactions - the major newsagent chain  here has concluded that it is actually cheaper for them - less cash on the premises, lower insurance costs and better controls of sales means that cash does not disappear...


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## murphaph (17 May 2013)

daheff said:


> The banking/ATM system is compatible with SEPA...I dont know why you think its not? Visa debit cards are nothing to do with SEPA


Laser and other "national only" payment sytsems (like the German "girocard") are NOT SEPA compatible because Laser (for example) won't work at POS terminals in say, Germany. 

That's why Laser will be dead by the end of the year, being replaced by pament providers who can handle payments across the entire SEPA, the likes of Visa with their VPAY product, and MasterCard with Maestro, both of which are/will be SEPA compliant.

From February next year you have to be able to use your debit card at POS terminals across the SEPA just like you were at home. That's why banks across Europe have been replacing old "national only" cards like Laser, with trans-national solutions like Visa.


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## murphaph (17 May 2013)

Jim2007 said:


> Yes but the day will come and I expect it is not too far away, when you will be discouraged from making cash payments!
> 
> In the past six months here in Switzerland I've seen a big change over to card transactions - the major newsagent chain  here has concluded that it is actually cheaper for them - less cash on the premises, lower insurance costs and better controls of sales means that cash does not disappear...


In Germany cash is still king but even here you can see the transition taking place as more supermarkets are taking credit cards (not just debit cards) and cashback has appeared now at a few supermarkets (obviously also trying to reduce the amount of cash held in the safe).


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## pudds (17 May 2013)

Had to renew my Ulster Bank Visa Debit card which was marked as a 'service card' but did everthing I wanted, atm, pos, internet shopping.

On the new Visa debit card they have dropped the 'service card' and it now says in it's place, 'debit card'


Haven't a clue what this 'service card' was all about, meantime they still list on their web site a Visa type 'cashcard' only available on savings account.


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## Jim2007 (17 May 2013)

murphaph said:


> In Germany cash is still king but even here you can see the transition taking place as more supermarkets are taking credit cards (not just debit cards) and cashback has appeared now at a few supermarkets (obviously also trying to reduce the amount of cash held in the safe).



[broken link removed] seems to be the new kid on the block - the local newsagent had two big signs out this morning letting us know that he now accepts it.


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## TarfHead (17 May 2013)

Was getting a cup of coffee earlier today and the person ahead of me paid using an iphone app. Don't know what the app was but heard her say that she had a balance of €10.00 which was then reduced after payment.

The shop has a contactless POS machine.


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## Jim2007 (17 May 2013)

Yes I think this Paypass type of thing is available on smartphones too.


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## hfp (21 May 2013)

pudds said:


> Had to renew my Ulster Bank Visa Debit card which was marked as a 'service card' but did everthing I wanted, atm, pos, internet shopping.
> 
> On the new Visa debit card they have dropped the 'service card' and it now says in it's place, 'debit card'
> 
> ...



The only difference is that Service Card had cheque guarantee functionality, debit card does not.  Cheque guarantee has been withdrawn, which is why your card has changed


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## pudds (21 May 2013)

hfp said:


> The only difference is that Service Card had cheque guarantee functionality, debit card does not.  Cheque guarantee has been withdrawn, which is why your card has changed



aw right thanks for that.


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## daheff (22 May 2013)

Jim2007 said:


> Yes I think this Paypass type of thing is available on smartphones too.


 
Its essentially an eWallet. GPay and Paypal are (2 of) the leaders in developing this. Contactless phones are being rolled out more and more, and you can expect to see this kind of thing more often now.


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