Surprise! That debit card may cost you
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"I just don't see how people can miss them. If you miss the first one, you'll see it on your periodic statement. It's hard to see how you can make them any more explicit."

Feddis indicates it could be a long time before point-of-sale devices would be able to tell a customer whether they'll be charged a fee and the amount.

"The system isn't set up that way. The system would have to have access to everybody's account. The network doesn't know whether my account is charged for a point-of-sale transaction. All the merchant gets back when he submits a transaction is a yes or a no -- the transaction is approved or declined. Point-of-sale machines are not smart machines; they're not as smart as ATMs."

Ben Edmonds, executive director at the Chicago-based Coalition for Consumer Rights, says point-of-sale machines should be upgraded if it's technologically feasible for them to have the fee information.

"The industry needs to set a goal, say, 10 years down the road; the units need to be replaced. Set a goal for that disclosure. In the short term, some kind of notice should be attached to the debit card reader alerting the customer that they may be charged a fee."

Everyone gets penalized
Ironically, signing for a purchase to avoid the fee may end up costing consumers more money. Ed Mierzwinski, consumer program director at U.S. Public Interest Research Group and a prominent critic of many of the fees imposed by banks, wants better disclosure but says it's a two-sided issue.

"Disclosure will help the customer save money, but it will lead to more signature-based debit and that costs everyone more in the long run. If you look at why they're charging the fee, it's not to make money, it's to drive you to signing. They make more money -- not from you, but from the merchant. If more people use signature debit, the price of all goods and services for all consumers is going to go up."

If you've been unpleasantly surprised by a debit card fee and think that current disclosures aren't good enough, let the Federal Reserve know your opinion. The Central Bank's Web site has details for registering your complaint. Comments must be received on or before July 23, 2004.