Page 1 of 2 12 LastLast
Results 1 to 15 of 29

Thread: Bank of American: Debit Card Fees

  1. #1
    Banned RedBlackNWhite is offline
    Join Date
    Feb 2010
    Location
    Farin =(
    Posts
    3,057
    Credits
    1,225,400

    Thumbs down Bank of American: Debit Card Fees

    More bad news for bank customers: Debit card fees
    Debit card fees just the latest unwelcome change for checking account customers


    NEW YORK (AP) -- Bank of America will start charging debit-card users $5 a month to pay for purchases. The move comes as the cards increasingly replace cash and as banks look for ways to offset the loss of revenue from a new rule that will limit how much they can collect from merchants.

    Paying to use a debit card was unheard of before this year and is still a novel concept for many consumers. But several banks have recently introduced or started testing debit card fees. That's in addition to the spate of other unwelcome changes checking account customers have seen in the past year. Bank of America will begin charging the fee early next year.

    Bank of America's announcement carries added weight because it is the largest U.S. bank by deposits.

    The fee will apply to basic accounts, which are marketed toward those with modest balances, and will be in addition to any existing monthly service fees. For example, one such account charges a $12 monthly fee unless customers meet certain conditions, such as maintaining a minimum average balance of $1,500.

    Customers will only be charged the fee if they use their debit cards for purchases in any given month, said Anne Pace, a Bank of America spokeswoman. Those who only use their cards at ATMs won't have to pay.

    The debit card fee is just the latest twist in the rapidly evolving market for checking accounts.

    A study by Bankrate.com this week found that just 45 percent of checking accounts are now free with no strings attached, down from 65 percent last year and 76 percent in 2009. Customers can still get free checking in most cases, but only if they meet certain conditions, such as setting up direct deposit.

    The study also found that the total average cost for using an ATM rose to $3.81, from $3.74, the year before. The average overdraft fee inched up to $30.83, from $30.47

    The changes come ahead of a regulation that goes into effect next month.

    Starting Oct. 1, the regulation will cap the fees that banks can collect from merchants whenever customers swipe their debit cards. Those fees generated $19 billion in revenue for banks in 2009, according to the Nilson Report, which tracks the payments industry.

    There is no similar cap on the merchant fees that banks can collect when customers use their credit cards, however. That means many banks are increasingly encouraging customers to reach for their credit cards, in hopes of reversing a trend toward debit card usage in the past several years.

    An increasing reliance on credit cards would be particularly beneficial for big institutions like Bank of America, which have large credit card portfolios, notes Bart Narter, a banking analyst with Celent, a consulting firm.

    "It's become a more profitable business, at least in relation to debit cards," Narter said.

    This summer, an Associated Press-GfK poll found that two-thirds of consumers use debit cards more frequently than credit cards. But when asked how they would react if they were charged a $3 monthly debit card fee, 61 percent said they'd find another way to pay.

    With a $5 fee, 66 percent said they would change their payment method.

    Several banks are nevertheless moving ahead with debit card fees.

    SunTrust, a regional bank based in Atlanta, began charging a $5 debit card fee on its basic checking accounts this summer. Regions Financial, which is based in Birmingham, Ala., plans to start charging a $4 fee next month.

    Chase and Wells Fargo are also testing $3 monthly debit card fees in select markets. Neither bank has said when it will make a final decision on whether to roll out the fee more broadly.

    The growing prevalence of the debit card fee is alarming for Josh Wood, a 32-year-old financial adviser in Amarillo, Texas.

    Wood relies entirely on debit cards to avoid interest charges on a credit card. If his bank, Wells Fargo, began charging a debit card fee, he said he would take his business to a credit union.

    If a debit fee became so prevalent that it was unavoidable, Wood said he's not sure how he'd react.

    "I might use all cash. Or go back to writing checks," he said.

    Bank of America's debit card fee will be rolled out in stages starting with select states in early 2012. The company would not say which states would be affected first.

    More bad news for bank customers: Debit card fees - Yahoo! Finance



    (People used to ask me why I bank with Wells Fargo/Wachovia) ha take dat in allyuh pooch

  2. #2
    Gladiator
    Guest
    man I left Bank of America and Citibank more than 5 years now..dont care to read cause its the same ole story with them

  3. #3
    Registered User MR HYPE's Avatar MR HYPE is offline
    Join Date
    Feb 2004
    Location
    Where ever ya see meh
    Posts
    7,634
    Credits
    1,623,520
    i will be leaving them too

  4. #4
    Taj
    Loyalty to Loyalty Taj's Avatar Taj is offline
    Join Date
    Mar 2006
    Location
    Fix up, look sharp!
    Posts
    48,960
    Credits
    42,728,994
    if you leaving them for this you will meet the fee with another bank tho

    in 2012 they will all be doing it unless you with a credit union.
    “A sharp knife never proclaims it’s sharpness to the world…but the first to fall against it becomes it’s advocate.”

    You can put any face behind a mask but be careful cos someone else might be pretending. You might not be the only one with a secret -- Cassie/Gretel

  5. #5
    Banned RedBlackNWhite is offline
    Join Date
    Feb 2010
    Location
    Farin =(
    Posts
    3,057
    Credits
    1,225,400
    I just hope this is a failed experiment that causes BoA to lose rather than gain so other banks dont even THINK about adopting the same policy

  6. #6
    Registered User Inquistive is offline
    Join Date
    Jul 2009
    Location
    Orlando
    Posts
    21,529
    Credits
    3,861,086
    Blame the Democrats for creating bank overhauls.

  7. #7
    Taj
    Loyalty to Loyalty Taj's Avatar Taj is offline
    Join Date
    Mar 2006
    Location
    Fix up, look sharp!
    Posts
    48,960
    Credits
    42,728,994
    Quote Originally Posted by njtrini View Post
    I just hope this is a failed experiment that causes BoA to lose rather than gain so other banks dont even THINK about adopting the same policy
    ummmm. yea i have a different source

    SunTrust, a regional bank based in Atlanta, began charging a $5 debit card fee on its basic checking accounts this summer. Regions Financial, based in Birmingham, Ala., plans to start charging a $4 fee next month. Chase and Wells Fargo are also testing $3 monthly debit card fees in select markets. Neither bank has said when it will make a final decision on whether to roll out the fee more broadly.

    Bank of America's debit card fee will be rolled out in stages starting with select states in early 2012. The company would not say which states would be affected first.
    it has already started
    ppl studying BOA when others have started already

    Starting Oct. 1, a regulation will cap the fees banks can collect from merchants whenever customers swipe their debit cards. Those fees generated $19 billion for banks in 2009, according to the Nilson Report, which tracks the payments industry.
    There is no similar cap on fees that banks can collect from merchants when customers use their credit cards, however. That means banks may increasingly encourage customers to reach for their credit cards, reversing a trend toward debit card use in the past several years.
    “A sharp knife never proclaims it’s sharpness to the world…but the first to fall against it becomes it’s advocate.”

    You can put any face behind a mask but be careful cos someone else might be pretending. You might not be the only one with a secret -- Cassie/Gretel

  8. #8
    LB
    Peace Love n Pretty Tings LB is offline
    Join Date
    Apr 2010
    Location
    At the Crossroads
    Posts
    19,466
    Credits
    57,234,971
    here your monthly service charge is tiered based on how often u use your debit card.
    u know <10, 10-20, <30 debit transactions that kind of thing.
    So once u see ur spending pattern u know which service plan works best for u budget. So I'm surprised that debit card use isnt already included in the monthly S/C fees that u are charged already. What the heck are monthly bank charges for if not to cover such things?
    ~ If you make the mountain any bigger you wont be able to move it later

  9. #9
    Registered User MR HYPE's Avatar MR HYPE is offline
    Join Date
    Feb 2004
    Location
    Where ever ya see meh
    Posts
    7,634
    Credits
    1,623,520
    Quote Originally Posted by Taj View Post
    if you leaving them for this you will meet the fee with another bank tho

    in 2012 they will all be doing it unless you with a credit union.
    thats what i am moving to, already have a savings a CU

  10. #10
    Freedom ~Ms. Classy Lady~'s Avatar ~Ms. Classy Lady~ is offline
    Join Date
    Nov 2005
    Location
    In the heart of an Angel
    Posts
    11,398
    Credits
    1,222,236
    ING all the way.
    ~~When your character is built on spiritual and moral foundations, your contagious way of life will influence millions.~~

    Real Eyes
    Realize
    Real Lies

  11. #11
    T-MAKAA
    Guest
    They will reduce this eventually

  12. #12
    Banned RedBlackNWhite is offline
    Join Date
    Feb 2010
    Location
    Farin =(
    Posts
    3,057
    Credits
    1,225,400
    empty shoe boxes will be put to good use... im sellign shoe boxes for $5

    but... this may actually do some good... put the focus on what you're using your money for

  13. #13
    Registered User MR HYPE's Avatar MR HYPE is offline
    Join Date
    Feb 2004
    Location
    Where ever ya see meh
    Posts
    7,634
    Credits
    1,623,520
    Quote Originally Posted by njtrini View Post
    empty shoe boxes will be put to good use... im sellign shoe boxes for $5

    but... this may actually do some good... put the focus on what you're using your money for
    or only use ur card when absolutely necessary

  14. #14
    Registered User Inquistive is offline
    Join Date
    Jul 2009
    Location
    Orlando
    Posts
    21,529
    Credits
    3,861,086
    Quote Originally Posted by Taj View Post
    if you leaving them for this you will meet the fee with another bank tho

    in 2012 they will all be doing it unless you with a credit union.

    Say goodbye to free checking accounts also.

  15. #15
    Registered User up2detime's Avatar up2detime is offline
    Join Date
    Mar 2007
    Location
    florida
    Posts
    3,412
    Credits
    1,521,042
    yeah that move just caused me to go completely with my CU. thats ok, one less card to carry

Page 1 of 2 12 LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •