Why is banking culture so bad?

So I’m pretty irritated by most banking culture.

Banks made bad decisions.  They got bailed out, and they are still being given access to a lot of cash for 0% or very very low percentages. This means they can make even more money.

Merchant Accounts, the good and bad.

Banks also give merchant accounts.  These accounts let business do commerce with your credit and debit cards.  They don’t cost the consumer, they cost the merchant.  My business gets charged between 1.8% to 3% + a .20-.30c transaction fee.  In terms we can all understand if we cleared $10k through 400 purchases we paid them somewhere around $320 for the privilege.

Now we work hard not to pass this on to the consumer, we just soak it as a cost of doing business.  The point is that we pay for those cards.

On to debit cards.

Then the government said you can’t charge a heck of a lot more to merchants for those debit cards.  Rates were almost competitive to the above numbers where they used to be pretty cheap.

We like debit, saved us money, but lately, not so much. To the point we stopped asking, “Credit or Debit?” We just charged it credit, made so little difference.

Now banks are pilot testing charging their customers a “convenience” charge to use their debit cards (yea the BoA $5/a month comes to mind today.)

It’d be like charging you for basic check usage.  All because the government said you can’t keep extorting money from merchants. They turn and look back at the consumer directly.

Bank of America said that they need to make a profit.

I’m all for profit, really.  You make profit through excellent products and customer service. Not from just taking money for something which has been paid for 100x over.

Lets recap.

Banks make a lot of money.

Banks make a lot of money off your money.

Banks make a lot of money off merchants.

Banks want you to pay for more without giving you more.

Banks are not innovating.

Why should anyone pay more for the current level of services?

Why is banking culture so bad?

Now I know this isn’t all banks, and it probably doesn’t involve 70% of the private credit unions but there is an endemic problem with banking culture. I think it needs to really be thrashed for being so callous, stupid, and outright heavy handed with how it is doing business with our capital.  While our money sleeps in their coffers they use it to make more money.  They often charge us for this benefit, rarely give us anything back, and have you seen the current savings interest rate?  Oh yea it’s too small to see.

If I were a bank I’d be looking at how I can serve the consumer, what I could do to make their life easier, better, faster, while earning more with what little we have.

Instead many who took bailout paid back early (illegally) so they could get their kickbacks set back up for the executive arms.

It’s just sad, and I had to rant about it for a moment.  I’ve got a keen eye on those banks which hold mine, and my businesses monies.

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