Bank of America Planning to Charge for Debit Card Purchases
From Next Year it May Cost You to Make Purchases with Your Debit Card
The Bank Of America is just one of a number of US Financial institutions that are seeking to charge customers who use their Debit Cards to make purchases, beginning in 2012.
With a change that is due to commence on the 1st October 2011 under the Dodd-Frank Act Durbin amendment, the amount that banks will be able to charge merchants for processing purchases using debit cards will be capped at 21 cents per transaction, whereas the average charge has been as much as 44 cents per transaction.
While merchants will no doubt welcome the government imposed regulation of fees, consumers are certainly not going to be too pleased, with the Bank Of America planning to charge a $5 monthly fee for the privilege of purchasing goods using their Debit Card.
For customers who are feeling the pinch and already struggling financially, using Debit Cards for purchases has proved to be safer than using Credit Cards, and a better method for many than either having to carry adequate cash to cover purchases or to use checks, which are fast becoming a thing of the past.
An additional $5 fee on top of the current monthly charges of approximately $8.95 to $14 for those who are unable to maintain an average balance of $1,500 in their checking account will not go down well with customers.
With other larger financial organizations also looking at this option of charging for the use of Debit Cards, it seems a step backwards for the banking system in the USA as far as customer charges, and may lead to many moving to smaller local banks who decide not to add these charges.
This change is almost certain to lead to a shake up in the banking system and could see many customers switching banks, to the detriment of those that implement these charges.
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Published by Tony Payne
Tony Payne is a freelance writer who lives on the South Coast of England with his wife Debbie. He has worked in the IT Industry all his life, and has been writing on various sites for the last 10 years. T... View profile
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23 Comments
Post a CommentDebit cards are dangerous. I use one and dread texting my bank for my balance. I banked with Wachovia and now with Wells Fargo, and as of yet, I haven't any new fees. I'm sure they are coming.
Thank goodness they reversed this decision!
these banks make me sick
Good reporting and writing on this article Laura Everly
People will probably switch to Credit Unions.
I think this will be good news for the Credit Unions, and those banks who decide to not charge. Enough is enough, especially when times are hard for the consumer.
I do business with credit unions and not banks. Banks tend to nickel-and-dime every chance they get.
I read about this. The credit unions aren't charging for the debit cards!
...So, as usual, the individual consumer gets penalized in the end. And people wonder why we Americans are so disillusioned with both our government and the business sector.
super