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.
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