61–70 of 82 posts
In 2023, JP Morgan Chase collected $1.1 Billion in overdraft fees https://www.consumerfinance.gov/data-research/research-repor...
I saw this and i thought it was wild but trust me from the inside that is just pennies. I promise.
I'm having a hard time wrapping my head around someone someone in business not understanding charging fees. You charge fees to get money. Banks are there to make profits. You say that banks don't make much money off of it, but maybe your idea of "much money" and mine are different. In my country, it is reported that bank fees make up approximately 5% of bank revenue, and I'm reasonably sure we have less fees than oth…
I have two bank accounts and 5 credit cards - no fees. And I'm not a rich SV programmer either. If I was, I'd probably get one of those fancy cards that does have fees.
> especially when they don't seem to make significant profits from them. Where do you get the idea they don't make significant profits from them?
Do they? Where? In the US? I have multiple bank accounts in both UK and Poland and none of them charge for just having the account or a debit card associated with the account.
I prefer to pay a decent fee so they make money for the service. As tech oligarchs have taught us if you are not the customer you are the product. I'd prefer to be a customer to my bank. Banks are an odd business. You are basically guaranteed some income but the margins are slim and lots of regulations. Despite all the bad behavior they are probably one of if not the closest watched businesses by gov regulators.
The banks are holding your money and lending it out at a profit (fractional reserve banking). You should not feel obliged to pay fees on top of this.
I think there are kind of three tiers of financial services: 1. Payday loan tier. It's very extractive and uses lots of fees and interest because getting a cut of whatever money is there now is all that matters. 2. "Normal" tier. There basically aren't fees for typical services, everything is paid for indirectly via interest rates and card fees or marketing other services. The banks I've used since the 2000s have all…
When it comes to banks, there is also a tier where fees are waived for high value customers. For example, checking, atm, wires, are free if you have $50k or more in your checking account.
I can't tell if this is a "link in bio" ad disguised as engagement bait. But, I've opened at least a hundred bank and credit card accounts over the last couple decades as part of "churning" community. Got tens of thousands of dollars in sign up bonuses and it sent my credit score to 830+. I started when I was broke, and kept doing it, since a couple scheduled 5 minute tasks for hundreds of dollars each time is still…
I'm having a hard time wrapping my head around someone someone in business not understanding charging fees. You charge fees to get money. Banks are there to make profits. You say that banks don't make much money off of it, but maybe your idea of "much money" and mine are different. In my country, it is reported that bank fees make up approximately 5% of bank revenue, and I'm reasonably sure we have less fees than oth…
Well, somehow not every bank/credit card needs to charge fees to make money. I have two bank accounts and 5 credit cards - no fees. And I'm not a rich SV programmer either. If I was, I'd probably get one of those fancy cards that does have fees.
Just as software and internet also has a mixture of free to use, once off, subscription, usage metering and fixed cost revenue, so too does banking and credit services vary their fee revenue structure and sources for its various financial services and products.
It's very hard to make universal statements to how these are structured, but about the only thing I think I can say is that if you aren't paying fees, the commercial entity must be aiming to make revenue off of you being a customer in some way. Some savvy customers can get services with a net positive value for free, but the business at large scale is going to try to extract what value it can.
It's hard to give a universal statement on price structuring, but generally fees can help squeeze revenue out of sticky customers, customers who need your services, customers who do not provide enough net capital or volume-based revenue to cover your costs.
You can also use fees to explicitly target or select for particular users. For instance, in some money and credit markets or markets which offer various costly rewards you can sometimes split your customer base into good revenue sources and costly freeloaders. A fee structure can even help signal or self-select these costly customers out of a product or identify them for your other product lines.
Earlier quoted context omitted.
When it comes to banks, there is also a tier where fees are waived for high value customers. For example, checking, atm, wires, are free if you have $50k or more in your checking account.
this is true. makes you question why they do it for them and not for everybody
That's understandable as they already make money with your savings...