Would monthly fee drive you away from debit cards?

Upcoming changes in the industry may prompt banks to start charging a monthly fee for you to use your debit card.

In a new Associated Press-GfK poll, 61 percent said they would find another way to pay if they were charged a $3 monthly fee. If the fee was $5, two-thirds said they would do the same. If the fee was $7, the figure rises to 81 percent, AP reports.

Would you be willing to pay a fee for the convenience of debit cards?

Would you switch to your credit cards instead? (By the way, some banks are already reducing their debit card rewards programs.)

Would you use cash more?

Write more checks?

– Henry Unger, The Biz Beat

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128 comments Add your comment

Belinda

July 15th, 2011
6:50 am

I’m not sure. I would think about using more cash, possibly writing checks. But I don’t know. Debit cards are so convenient. Something to think about.

Alison

July 15th, 2011
6:59 am

I don’t use one now. They aren’t as protected as a credit card (which I pay off each month) so why bother with them. I pay cash or credit card.

Still Looking

July 15th, 2011
7:01 am

The last thing we need are idiots writing checks. No one likes being stuck behind someone writing a check, who uses checks anymore at point of sales? paying bills is one thing, holding up a line of people while you try to figure out how to properly fill out a check and write the words for dollar amounts is excruciating.

Patrick

July 15th, 2011
7:22 am

Yes, I would go back to writing checks which would then just slow up the line. Then the store would not make as much money per hour, due to the line being slow, and they would complain to the banks. Granted, if you are in such a hurry that 1 extra minute ruins your day, then you have more problems than waiting for someone to fill out a check.

Laurie

July 15th, 2011
7:23 am

Checks come at a cost, and cash can too. First, I would try to find another bank or credit union that didn’t charge a debit card fee. If none were to be found, I’d start charging and pay it off every month to avoid a finance charge. The banks have taken too much of my money in the past for me to be willing to give up any more than I have to, to them.

James

July 15th, 2011
7:24 am

Pay Cash! If you have to use a debit card you probably
don’t need it anyway… Write a check for larger purchases
and if the people in line don’t like it move to another line…

Bad Banks

July 15th, 2011
7:24 am

As consumers, we should come together and leverage social media and other channels to demonstrate our frustrations with the changes banks are making. While reviewing new accounts available at Chase, I noticed that they have begun to charge a $3.00 debit card fee coupled with a $5.00 maintenance service fee (WTF!).

If these fees are added to my current accounts, I will move all of my banking to another financial institution. And too, I am not happy that Chase is ending its Debit Card Rewards program.

Most recently, I closed my savings account with Chase because of the insulting .05% rate offered. In comparison, my savings account is now with Capital One who offers an attractive 1.10%.

jackie

July 15th, 2011
7:25 am

I would go to checks and credit cards. The convenience of the debit card would be more than outweighed by the blatant greed of the banks to charge for it’s use. If Still Looking is so important that he is frustrated by the few seconds that it takes for someone to fill out a check he needs to send one of his myriad of personal assistant flunkies to perform menial tasks such as shopping.

MrLiberty

July 15th, 2011
7:38 am

In a heartbeat. I only use the card because it is free. I would be happy using the worthless Federal Reserve Notes if that is what the banks are going to do.

hula

July 15th, 2011
7:40 am

Use checks. It drives the banks crazy. Use checks, even for items that cost 69 cents. Never use cash, or debit cards, and never use a credit card. Use checks – drive the bankers to Looney-Tuney-ville. Tedious I know – checking the balance, balancing what you spent vs what you have- but it’s for the greater good. Bring the bankers to their knees, make them beg for mercy. Checks.

mystery poster

July 15th, 2011
7:41 am

I would think that it would be much less expensive for a bank to process a debit transaction than a check transaction.

midtownguy

July 15th, 2011
7:53 am

If you are not willing to pay a small fee for the use of your debit card, then by all means give it up. No business can make a profit offering free services. And if all you go to the “I will write a check for everything” route, nothing is stopping them from charging processing fees for paper checks.

Jay

July 15th, 2011
7:54 am

I will cut up my debit card if that is the case!

jay

July 15th, 2011
7:56 am

hey midtown, it’s called cash. mystery, it is much cheaper becasue they do them in batch with literally millons of other transactions all at the same time and all electronic. checks still run through those big sorters.

Regions Sucks

July 15th, 2011
7:59 am

It’s coming to a Regions near you!

Like their slogan goes…”expect more”….FEES

Ghost

July 15th, 2011
7:59 am

If Wells Fargo starts charging a fee for my debit card, it would further push me to an all cash program that I aspire to anyway! So, feel free.

Cash Baby!

July 15th, 2011
8:00 am

We could see a 180 from the past when you paid extra to use credit or debit. The banks are going to get their share one way or another. I predict you will see merchants charging extra to pay with cash, cause the bank will charge them to “handle” it.

cg

July 15th, 2011
8:01 am

Keep your hands out of my pockets! After Obama’s destruction of this economy, we better figure out how to become strong Americans again and just say “NO” to change, the kind that idiot (Obama) has created. Fundamental change = third world country. Note to the wise: Don’t vote for him because he’s black, you’re smarter than that. Sadly, most blacks will vote for him because he’s black. Look at all the black led countries in the world. Are they thriving? Are they on top of their game? Maybe soccer, but not life.

Regions Sucks

July 15th, 2011
8:01 am

They are trying to get people to use checks…and bounce them so they can receive revenue from the NSF charges. The government had to stick their nose into the banking industry and make debit cards decline if the money wasn’t available on your account. That forced so much in lost revenue for banks.

cg

July 15th, 2011
8:02 am

However, Herman Cain is a great candidate for President of the U.S. I’m voting for him, not because of color, but because he’s not a destructionist, smooth talking, faker.

commoncents

July 15th, 2011
8:02 am

I really only use mine now for atms and auto-paying bills. Everything else goes on the cc because they are more secure and I get cash back on everything. Of course, I only use a cc because I pay it off monthly. Paying interest on day to day transactions is NOT wise.

If my bank starts charging for debit cards, I will probably just start carrying around more cash. Checks are too much of a hassle and are expensive to replenish (And a p.i.t.a. to use/reconcile!)

dd

July 15th, 2011
8:13 am

Never have seen the point of debit cards anyway. Credit cards are easy to use, and as a consumer, offer me protections against being stolen (or fraud) that debit cards don’t. Only reason I use a debit card is access to ATMs.

Chris

July 15th, 2011
8:15 am

I would use cash. It is sad to see banks going after the little people like this …

Consumer

July 15th, 2011
8:17 am

No Way. I would never use a credit or debit card that charges a fee. The cards make money for banks already. Banks are getting as bad, or worse, than airlines. Banks are greedy, greedy, greedy.

Regions Sucks

July 15th, 2011
8:17 am

FWIW dd, Visa and Mastercard debit cards are protected against fraud. The only problem, you don’t get your money back immediately like with some credit cards. The process can hold your account balance hostage for up to ten days.

What ever!!!!!!!!!!!!!!!

July 15th, 2011
8:17 am

I will write checks when I have to. Paper checks will cause the banks to hire more people to process them and that will cut out the fees right off the bat. When they have to add people, salaries, benefits and match that 401K for hundreds of employees then the fees either get bigger or they dont benefit the banks. Poor move on the bank I would say but good for someone who is out of work and needs a job.

Hussein

July 15th, 2011
8:18 am

More Hope & Change!

Sick and Tired

July 15th, 2011
8:19 am

Nothing NEW has been suddenly added to our lives. In the banking world, their job has always been to continue to squeeze us in any way they can. In Politics, I’m tired of everyone blaming President Obama for trends, spending, debit, etc. that actually began over 10 years ago that we are ALL regardless of color, still suffering from to include bank, housing, and war failures….LONG BEFORE HIS PRESIDENCY. Education, NCLB caused cheating! And that was before the President took office. If these mega rich people would just pay what needs to be paid and the middle and little people would be left alone! I bet the U.S. wouldn’t be in this fiasco.

Roger

July 15th, 2011
8:20 am

I am going to start withdrawing cash from the bank from now on in pennies and have them count it one penny at a time – let’s see how they like that.

Red

July 15th, 2011
8:21 am

If people went to cash and checks banks would follow – they would bill for each check, ATM transactions, etc. If the banks want more profits to offset their lousy decisions over the past decade, there is not much we can do about it short of mattress stuffing and a law in Congress.

Nickie

July 15th, 2011
8:21 am

I agree with commoncents above. I use a debit card at the ATM only. I have an Am Ex cash back credit card. No annual fee and I get 2% cash back every month. Always pay it off every month so there is no interest. This is the only sensible way to use a credit card. If the bank put a fee on the debit card or Am Ex began charging a fee on the cc I would switch to cash and checks. You can still get fairly cheap checks if you use the basic no frills ones. More of a hassle but I won’t pay fees.

Sick and Tired

July 15th, 2011
8:22 am

DEBT not debit, but what’s the difference, the big guys are still collecting from the rest of us. With the loop holes, mega rich people get over while the rest of us suffer! They get the tax breaks instead of paying their share of taxes while the rest of us get dumped on. If we want anything Good to come from America, we as “the people” need to stop being so GREEDY and make EVERYONE pay their share, instead of just the middle and lower class.

carlo roqs

July 15th, 2011
8:22 am

there is no way that Obama “ruined” this country in 2 1/2, 3 years. you are an idiot. he is playing clean up and anyone coming into office at the time he did would have faced the same issues. this is not an autocratic society–the prez does not have freedom to do whatever he wants. Lord, ATL- God bless ya. AND he has nothing to do with debit cards. yes, please, by all means vote for herman cain, that will work. anyway– i agree with hula–checks to slow things down. the banks were bailed out, if i use my debit card 10 times a week– ummm, no, no to fees. and the person was right who said we just use them as a convenience anyway– the cash is available– i tend to spend and/or lose cash quicker though.

sladersaan

July 15th, 2011
8:22 am

Cash is King!!!!

sladersaan

July 15th, 2011
8:27 am

@carlo roqs

Studies have proven that when we use cash instead of plastic (debit and credit card included), we spend 14% less. If you stick to a mostly cash program, you might be surprised how much less you spend and more you save.

Jason

July 15th, 2011
8:29 am

Sounds like the banks are trying to make up some of the hundreds and hundred of billions they lost giving out bad construction loans to anyone with a hammer and a pickup truck with ‘contractor’ crossed out and ‘real estate developer’ written in. Almost every bank failure in Georgia (by far the bank failure capital of the nation) has been because of giving out real estate development loans to any good ol boy who stumbled through the door. Those that haven’t failed need to find ways to make up for their past mistakes.

MrLiberty

July 15th, 2011
8:29 am

The US Dollar is poised for collapse. When that happens you will need a wheelbarrel to carry the cash you will need just to buy a few groceries. Just look at the history of 1930s Germany, 1990s Argentina and Zimbawe from a few years ago. The only solution will be some sort of precious metal standard. With modern technology that could easily be a digital debit card. Bottom line is that traditional banking will collapse along with the dollar and everything will change from what we know now. The banks are in the business of making people believe they can have their cake and eat it too while robbing from the US economy to pay the bills. End the Fed.

Zoe

July 15th, 2011
8:31 am

Banks make money hand over foot. Every little expense is passed on to the customer. If my credit union puts a fee on my debit card, I simply will stop using it and go back to the old days of carrying cash. Shame on the banks, though. Their greed is disbusting.

Floyd

July 15th, 2011
8:32 am

You can be certain of this much: Banks that charge for debit cards will be no different than banks that charge a monthly fee for checking accounts. Somewhere out there, another bank is going to do it for free in order to drive business its way. Do some some research, find that bank and reward it with your loyalty. Big banks are pirates – providing better service at a far lower cost is how smaller, local banks survive.

Mr. Charlie

July 15th, 2011
8:38 am

If I want to write a check that’s my choice, this is America isn’t it. If you’re too uppity to stand in line, move to another line, otherwise stand behind me and eat crow! What make you think that you’re so much better than me that you deserve the privileged to only be in line with cash & credit card paying customers.

That’s why this country is halfway in hell, people think they’re better than someone else. If you’re that disgusted by my carrying a checkbook, we can always step outside so you’ll have the hcance to say it to my face.

Cash is Dangerous

July 15th, 2011
8:42 am

This is to force people to use credit cards for everything, which will most likely put many in debt again.

I use my debit card several times every day as it is MUCH more dangerous to run errands with wads of cash. Personal robberies will go up if they know much of the population is running about town with lots of cash in their wallets and purses.

Hussein

July 15th, 2011
8:42 am

Hussein obama started this trend last year when he FORCED banks to have their debit cards decline in the event the money was not in their account. It’s not the banks fault at all. They have to make money so they can pay their employees, 401ks, offer services, etc. There is only ONE administration you can blame for this.

Shirley Hamm

July 15th, 2011
8:43 am

Go back to writing checks or even better than that – stop direct check deposit and and use cash. What happened to the banks and work place trying to go paperless??? Not to mention the Government offices???

ExExaminer

July 15th, 2011
8:43 am

Many Banks are hurting. Theyre not making loans, which would generate interest income, so the must make up new ways to take your money. Fee income/non interest income is the only way they can turn. Hence, new fees regarding Debit cards. I will not use mine, if this is to occur.

Nope

July 15th, 2011
8:44 am

Put your money in a credit union.

Bill

July 15th, 2011
8:48 am

Government at work!

Jones

July 15th, 2011
8:49 am

It will be more expensive to write checks vs. pay a fee for the debit card usage. The price of checks is outrageous and the amount used will increase. Either way that have got consumers by the neck! Quite frankly continuing to use the debit will be cheaper.

The safety factor using cash to pay for everything is crazy. You are increasing your chances of being robbed and losing lots of money and being physically harmed. Anybody that carries lots of cash is nuts.

Timing is bad as this will have an effect on spending habits. Our economy doesn;t need the turmoil now.

Sanjeev

July 15th, 2011
8:51 am

I’ll completely stop using my debit card if I get charged a penny. I’d probably cancel it and only get an ATM card if an option. Or just not use it at all. I’ll switch to credit cards.

Duane

July 15th, 2011
8:52 am

Pass the fees onto the establishment accepting the cards.

The Accoountant

July 15th, 2011
8:53 am

@ExExaminer Banks ARE not hurting. Don’t be foolish.