Bank of American just announced that they will begin charging customers $5 a month if they use their debit cards for purchases. The fee won’t be charged to customers who only use their debit cards at ATMs. The fee begins early next year.
SunTrust has also announced they’ll charge customers who use debit cards for purchases. A colleague who banks there said she received a letter notifying her of a $5 per month service charge. She said she’s dumping them and going with Charles Schwab online banking.
Wells Fargo will begin testing a $3 monthly “activity fee” for debit cards in several states in October (Virginia is not one of them).
The fees are the result of the Federal Reserve’s ruling to cap debit card swipe fees collected by banks. The 21-cent cap goes into effect Saturday.
The banking industry has said the cap will cut into revenues and doesn’t cover the cost of providing checking accounts, hence the fees that we’re starting to see.
According to a Wall Street Journal story, Bank of America said the cap will result in a $2 billion loss in revenue. Indsutrywide, the cap is expected to result in a $6.6 billion loss of revenue, according to the story.
If your bank is charging a $5 monthly fee will you still use your debit card for store purchases?