Bank of America Cancels Planned Debit Card Fee
Bank of America has scraped plans to charge debit card consumers a $5 per month fee.
This follows a flurry of activity during the last few days from other banks that also dropped the debit card fee.
Yesterday, two banks that had already instituted the fee reversed their decisions. Regions Financial Corp ended their $4 monthly charges that had started October 1. SunTrust dropped their $5 per month fee which began in June. Both banks said they will reimburse their customers.
Last Friday, Chase and Wells Fargo announced they were ending the monthly debit card fees they were testing in various states.
This is great news for consumers, but this is not the end of new fees. Banks are still losing billions of dollars in revenue from the interchange fee regulations. They will find
more subtle ways to make up for this lost revenue, increases that may fly under the radar. Banks may increase existing fees or raise the introductory interest rates on credit cards. They will find some way to increase their revenue, and it’s always the consumer that will end up paying for these increases.