Bank of America announced that it will begin charging a $5 monthly fee for cardholders who use their debit cards, a move that may impact banking relationships on campus.
According to The Daily Californian, other major banks are expected to follow suit including JP Morgan Chase and Sun Trust. Wells Fargo plans to pilot a $3 a month debit card activity fee beginning in five states: Oregon, New Mexico, Nevada, Georgia and Washington.
This “debit usage fee” will apply to anyone who uses their debit card to make a purchase but will not be applied to those who use their cards solely for ATM withdrawals, online bill payments or mobile phone transfers, according to Anne Pace, spokesperson for Bank of America.
Charging a monthly fee for debit cards is likely to directly impact the bank accounts of university partners. Many students have expressed their discontent with the new debit usage fee, with some stating that they plan to switch banks.
Read the full story here. ![[end]](/resources/bullet/cr80news-4.gif)
The Durbin Amendment is solely responsible for the wave of new bank fees. BofA and all other big banks are looking for ways to make up for lost revenues and, frankly, I can't blame them, even as I don't enjoy paying higher fees.
It's been abundantly clear ever since the debit interchange limit was first proposed that it was ultimately going to hurt consumers in the form of higher fees and that is precisely what is currently happening. http://blog.unibulmerchantservices.com/banks-discontinue-debit-rewards-programs
Durbin certainly has an impact. I'd be careful with saying it's solely responsible. Certain not-so-wise moves by Bank of America (i.e. buying Countrywide with their portfolio of subprime mortgages and shady underwriting practices) have a greater bottom-line impact in the near term than recent regulatory changes. Some other banks will match this move, while others in better financial shape will see it as an opportunity to pick up customers and not impose additional fees.