Bank of America and its $5-a-month debit-card fee
In response to a new federal law limiting the hidden fees that banks can charge for using debit cards, Bank of America has announced that next year it will charge $5 a month to consumers who use its debit card to make purchases. SunTrust is expected to follow suit, as are other banks.
By some, this will no doubt be seen as another example of well-intended federal regulation with bad consequences. It’s quite the opposite. In fact, conservatives ought to love the change because it enlists market forces, not the government, in protecting small business and consumers.
A quick review: Every time a consumer uses a debit card to make a purchase, the business accepting the card is forced to pay a processing fee to the bank. The previous maximum of 44 cents per swipe was far more than it cost banks to handle the transaction, which meant it was also a significant source of profit. Even better, because the fee is hidden from consumer view, banks felt no competitive pressure to lower it.
Under the new rules, the maximum fee has been cut from 44 cents to 21 cents per swipe, plus .05 percent of the purchase price. The upfront monthly fee announced by Bank of America and other banks in intended to offset that revenue loss, they say.
Great!
Suddenly, the fee that had previously been hidden from consumers is now upfront. Now consumers have a more information about what they’re actually paying to use the card, and they can make decisions accordingly.
In this case, Bank of America is facing a significant consumer backlash over its fee annoucement. Other banks have announced monthly fees of $2 or $3. Credit unions and community banks are less likely to charge the fees, and Citigroup has announced it won’t charge such a fee at all because it would be “a huge source of irritation” to customers.
“We conducted extensive surveys with our customers, and no one wanted to pay to use debit cards,” Citibank retail banking chief Stephen Troutner said.
In other words, competition!
This is not the end of “free checking” or “free debit cards,” because as Muddy Waters taught us, you cain’t lose what you ain’t never had. You were being charged for it anyway, although you had almost no idea how much or even by who. Now you know.
If Bank of America charges you $5, but Citigroup charges you nothing, where will you take your business?
Banks don’t like the rule because it empowers consumers and reduces if only slightly the information imbalance between bank and individual. It forces the market to work more efficiently.
– Jay Bookman
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270 comments Add your comment
Paul
October 3rd, 2011
10:41 am
jm
“Bosch 10:05 – prove I’m wrong then”
You’re doing just fine without Bosch’s help.
Normal
Congrats! Years back at a family get together (five generations) I leaned over and said to my grandma ’see what you started?” She just laughed and said ‘goodness! I didn’t do all this!”
Thogwummpy
October 3rd, 2011
10:43 am
But wait…can’t one extrapolate and argument that the bank card fee will disproportionally affect people with less income than the rich (given against a percentage of wealth)? Framed that way—-Bookman should be against it—-as he concocts anti-successful people canards as a rule! Then again, he must have gotten sloppy with the mental gymnastics this time and missed the class warfare (hatred) angle. Jay must be slipping! Like the coming fat tax on food, that too will effect lower incomes more than the rich. So when this hits the table (as it surely will), Jay needs to re-read his “despise your neighbor that works harder than you” playbook.
Bosch
October 3rd, 2011
10:43 am
Paul,
“You’re doing just fine without Bosch’s help”
As usual.
Rightwing Troll
October 3rd, 2011
10:43 am
Been a BoA customer since 2004. Never been happy with all the hidden fees, I don’t mind paying $60.00 a year for the privilege of not having to always make sure I have cash in my pocket. Every single bank out there charges fees in one form or fashion, it’s thier profit center, it’s just more out in the open now and more up front.
Granny Godzilla
October 3rd, 2011
10:44 am
jm
“She wants to eliminate financial products that people use and need”
double dawg piffle
You’re not backing it up because you simply can’t.
Most amazingly for all the talk of who’s scared of who in politics it has become crystal clear that the GOP is wetting their pants and shivering in their shoes over this marvelous woman.
I’m lovin’ it.
Waheema
October 3rd, 2011
10:44 am
It was tiime for Glass Stegall to be modified, not repealed. The repeal was a mistake in 2007-08 banks operated on leverage ratios that were far too large. In some cases perhaps as a high as 40 to one. Notice that the Obamacrats did not reinstate Glass Stegall but instead jammed through their own partisan brand of financial “reform” most of which had nothing to do with the banking problems. There was clearly a problem that needed fixing but the Obamacrats went far, far overboard.
Serious problems with overleverage gave the Obamacrats an excuse for far more serious intrusion. Re-instating Glass Stegall would have been a better policy solution than the partisan overreaching of Dodd Frank.
Kat
October 3rd, 2011
10:45 am
I would ditch my checkbook entirely, if there weren’t still a few places out there that only take cash or checks. As much as I’d like to go paperless, it doesn’t seem possible. Perhaps I should shop elsewhere?
Also, I want to go all online with my banking and bill payment, but unfortunately there always seems to be one digit difference or password problems when I try to set things up. So irritating!
neonpisces
October 3rd, 2011
10:46 am
I am a customer of Bank Of America and have always been treated good. I am one who uses my Visa Debit Card for everything. I use it for groceries, online purchases, purchases at local retailers. I never carry cash with me. Since it has the Visa logo, I can use it just about anywhere. I’ve never had it refused by a merchant. I probably use it 60 to 80 times a month. For $5.00, it’s worth the convenience to me.
Bosch
October 3rd, 2011
10:48 am
“it has become crystal clear that the GOP is wetting their pants and shivering in their shoes over this marvelous woman”
Isn’t that the truth, Mrs. G. — and unlike Palin and others that the wingnuts are so convinced we are petrified of — her talk resonates with millions…
She will be our first lady POTUS.
Granny Godzilla
October 3rd, 2011
10:49 am
Bosch
I think that is a real possibility….
PMC
October 3rd, 2011
10:50 am
Good Column here Jay.
Banking101
October 3rd, 2011
10:51 am
Consumers were NOT being charged for using their debit cards before with hidden fees. Corporations/Business pay these fees to encourage spending at their stores. If the government or anyone else reading this article believes that merchants are going to lower the prices for their goods and services because the cost per swipe has been cut in half, I say this in the most respectful way, you are crazy. The merchants will benefit consumers will not. We will be paying the same price we always paid for goods and services PLUS a monthly fee for a debit card.
And did anyone stop to take into account the cost of cash services and check processing? Cash service cost has sky rocketed because it is being used less and less. The merchants won’t be seeing a huge cost cut just spending it in different areas.
And how soon until the US follows the UK who is on track to phase out checks by 2018??
PMC
October 3rd, 2011
10:51 am
Any way we can increase actual market forces and competition and get it out in the open I’m for.
Businesses in this country are all for the free market…. until they have to compete.
sherry
October 3rd, 2011
10:51 am
Just sit back it going to a bumpy ride. Wells Fargo charges me 2.00 a month to store images. Now they are going to charge me 3.00 for using my debit card. I looking for a much customer friendly bank or Credit Union.
T
October 3rd, 2011
10:54 am
What you are also failing to mention is that the banks, not the retailers, are responsible for fraudulent activity on a consumer’s account which is ridiculous. That is due to this new regulation that you love so much. That is another reason that there is now charges for having. It is becoming too costly to the bank to allow them to be free. I suggest that you do more research on the new regulation, but I know you won’t due to it being a democratic bill.
je
October 3rd, 2011
10:57 am
Banks are doing what any other business would do.
I think it is a good thing for consumers. It encourages other banks to compete and lure customers away. Hooray for the invisible hand!
Browncoat
October 3rd, 2011
10:57 am
Jay, the universe may collapse, I actually agree with you on something! WOW
(the real) Independent
October 3rd, 2011
10:58 am
I don’t mind paying a $5 per month charge to use a debit card (they are very convenient) AS LONG AS they do not overcharge my bank account. That is where the banks have made their profit in the past. Charge your account with the largest deductions first, overdraft your account, then charge $35 each for every $2 purchase you make. Highway Robbery, but legal.
AmVet
October 3rd, 2011
10:58 am
The best part about the “loco” Elizabeth Warren?
Although only two weeks into the campaign for US Senator from Massachusetts, she already has a lead over Scott Brown (the RINO).
She has been a tireless advocate for consumer rights, holding big banks accountable and creating the new Consumer Financial Protection Bureau. She’s one of the great progressive voices on fixing the economy.
Oh and did I mention that she was the anti-Dick Cheney?
She saw what was coming before September 2008.
Her resume is incredible. Her expertise on these matters is widely acknowledged. Her character, impeccable.
So why does jm denigrate her so?
Because she stands up to the ideals of justice for all that his party gave up on, long ago.
neonpisces
October 3rd, 2011
11:01 am
(the real) independent
If you write down all the charges you make in your check register, you won’t have to worry about overdrafting your account. Each time I use my debit card, I write it down in my register. I know at all times how much money I have in there.
Tom
October 3rd, 2011
11:01 am
This has been an interesting read. I think this boils down to who is responsible for what. First at least the banks now have to disclose the fee. As far as I am concerned business should pay for their costs, which are passed on to consumers in one way or another. Individuals need to pay their costs and to know what they are.
If would be fine in BoA would say this is what we charge business to use a debit card reader and this is what we charge them to use a credit card reader and this is what we charge you to use either. Up front so we know what are choices are. This isn’t about market force this is just honesty.
There are options out there for all of us to choose, and so long as we know what we have to pay then if becomes market force as we choose.
I don’t like using debit card, risk, I don’ want to write checks, pain, so I use a credit card and pay the balance monthly or use cash. Let everyone make up their mind and take there business to the financial institution that suits their needs.
Just try and be certain that all the information is provided clearly and the costs are provided clearly so we know what it is costing us.
t
mum
October 3rd, 2011
11:02 am
The bottom line is that the banks have lost billions and they need a way to continue to make the huge profits they were making before economy went bust, regulations or no. The don’t want to help the average homeowner because they can write-off those bad debts when they put people into foreclosure.
Patti
October 3rd, 2011
11:02 am
It’s interesting that the banks were required to lower their debit card fee, but credit card charges to merchants remain higher. It was actually cheaper most of the time for a merchant to accept a debit card than the 3% American Express charges or approximately 2% for VISA or MC.
Sounds like the Credit Card lobby won!
AmVet
October 3rd, 2011
11:03 am
The welfare king Representative Tom Price is not willing to pay his fair share.
He is one of the 136 Republican millionaires currently serving in Congress. But he may pay a lower tax rate than you and most middle class Americans. And here’s the thing: He gets to vote on what tax rate he pays.
Why doesn’t Tom Price pledge to support the Buffett Rule so that millionaires—like him—pay the same tax rate as the middle class?
Bueller? Bueller? Anyone?
CU Employee
October 3rd, 2011
11:04 am
ummmmm… the only folks that benefit from this regulation is Walmart and other large retailers. I work at a small credit union and due to the Dodd-Frank act and the loss of the check card income… they have had to lay-off employees and shorten business hours. Deposits do not make money for a bank/credit union… loans create income. Since consumer confidence is down and nobody wants to take on more debt… loan volume is way down. Also… the rates are so low at the moment, you need to do twice as many loans to make up for the loans that are being paid off. This government regulation could not have come at a worse time!
USMC
October 3rd, 2011
11:06 am
10 years ago, I simply voted with my feet and left Bank of America for a smaller “LOCAL” bank with tellers that know me by first name, “US” lol!, and NEVER ask for my identification-
“Oh Sugar, you know you don’t need to show me id…” –feels like Mayberry RFd.right here in Atlanta
Bank of America is the same banking institution that accepts “Matricular” cards from ILLEGAL ALIENS as a legal form of id… Nice
Alex
October 3rd, 2011
11:07 am
How can this be a good thing? Sure we see how much we are being charged up front for the debit card fees, but there were no fees being paid by the consumer before. I realize that this fee was being passed on to the consumer before, but now the stores will still be charging the same prices as before and the consumer will be charged the $5 fee. So, how is it that I am spending more money to buy the same thing and this is supposed to be good for me?
Don’t serve me goose poo and tell me it’s foie gras.
Josh
October 3rd, 2011
11:15 am
Conservatives should be proud because this increases competition. This kind of liberal propaganda is why the AJC isn’t respected. Let’s get this straight, in a free market economy this wouldn’t happen. They would lose business and profits. However, in our over regulated banking system this can happen with little more than just angering customers. Larger banks have a government induced monopoly. Banks are so heavily regulated that small community banks struggle to keep their heads above water. When they fall into hard times the FDIC closes them down instead of giving them a bail out. When a large bank runs into financial trouble the government just gives them money like it is candy. This too big to fail too small to suceed mentality is destroying the free market. It has removed competition. In a free market the big banks would have went under and been replaced by new banks. There is still a demand for banks, people need somewhere to put their money.
let’s also look at the fact that most consumers don’t pay the swipe fee. Most business pay them out of their profits. This is why many of them have minimum transactions. To ensure they have the profits to cover the fees. This doesn’t help consumers as much as it helps business. Prices won’t go down, and people will have less money in their pockets. Again over regulation is hurting people and unintended consequences are being masked as free market to try to get conservatives to go along and make them look like they care more about business than consumers, because they realize removethe regulations you remove the cost and help both business and consumers.
Jm
October 3rd, 2011
11:16 am
Not my fault u guys don’t know how google works
Jm
October 3rd, 2011
11:18 am
U morons really are a waste of time
Amazing that natural selection, with it’s ability to develop the mammalian brain, has left you guys alive
Never underestimate the power of random chance I suppose
Have fun leg humping each other
Adam
October 3rd, 2011
11:22 am
jm: You know, it would be easier to take you seriously if you said something like “you know, I do get frustrated when I present data and you guys don’t take it seriously.” or something. You could also do without the name calling. If you followed those two things I don’t think you’d get as negative a response as you’re getting.
I get that no one can be on their game all the time when it comes to this, but we’re a forgiving bunch (that I have noticed).
M
October 3rd, 2011
11:24 am
Wait, wait, wait…I was PROMISED by Boortz and all the FairTax people that if you removed a cost from a merchant’s ledger, the price of goods and services would immediately fall due to competition.
Are you saying that this isn’t so?
Jay
October 3rd, 2011
11:25 am
A couple of things:
First, here’s an email sent to me by the chairman/CEO of a small, out-of-state community bank:
“We won’t be charging a monthly fee for debit card use. We hope to pickup customers that leave B of A and others because of this fee. If we’re successful in doing so, then the incremental profits will somewhat offset the $36K annually in debit card interchange revenue that we are losing.
What is really hurting us is that our FDIC insurance assessments have more than tripled since 2008. We’re paying for all of those Georgia bank failures:)”
Also, fresh sheets two stories up.
Browncoat
October 3rd, 2011
11:27 am
M, competition, per Jay’s post will keep prices down if you are willing to go to another bank.
AmVet
October 3rd, 2011
11:28 am
“Not my fault u guys don’t know how google works.”
And it is not our fault that you have no functioning spine.
The rules of blogdom – put up or shut up…
Matti's Good Sense
October 3rd, 2011
11:35 am
Cash: It’s what buys dinner. Take some out twice a week, and spend only what’s in your pocket. No fees! No interest! Nobody’s business! Tired of the Citibank database having a record of everywhere you eat and everything you order? Cash. Don’t want insurance nazis to know you sneak a smoke now & then? Cash. Wanna fill your tank in one part of town when you’re supposed to be in another? Cash. Wanna get better deals on yard work and home repairs? Cash. Want your favorite waitress/bartender/vice provider to love you more? Tip Cash. Every swipe is a check-in with Big Brother. Want Big Brother to go EFF himself? Spend cash.
snoqualmiefalls
October 3rd, 2011
11:41 am
We all saw this one coming a few months back. That is why I urged my family to reject the banksters and apply for a membership in a credit union. No fees such as the bank, cheaper interest rates than banks, plus cheaper mortgage rates. It’s a no brainer if you don’t have issues belonging to a cooperative or socialist organization… if you do, be happy and pay the crazy fees imposed at the bank’s whim.
Raquel Santiago
October 3rd, 2011
11:56 am
Loss of revenues my ass. Bank of America post billions of dollars in revenue each year. how much greedier can you get than them. if they even attempt to charge me $5.00 a month for use of my debit card i will close my personal and business account and then they wont get a dime. I wonder how they will feel about the loss of customers due to this. They in actuality will lose money. As it is now every time we deposit money they invest that money and make money so i dont know who they are trying to fool.
MiltonMan
October 3rd, 2011
12:10 pm
Libs are wrapped around tax rates appearantly have no clue how 8th grade Algebra works. And the Buffet Rule??? Warren himself is now saying it is not his rule.
And libs proclaiming Elizabeth Warren as first woman POTUS???? You same clowns predicted the Hildabeast to already be that one. Scott Brown will do nothing more than run TV ads highlighting Liz as an Obozo admin staffer to ensure 4 more years.
Obama is over
October 3rd, 2011
12:22 pm
After the purchase of Countrywide by Bof A, they became the largest underwriter of subprime mortgages. Freddie Mac and Fannie Mae were the largest purchasers of subprime debt because as Government agencies, their cost of funds was cheaper than the private sector. The SEC is in the process of a settlement with BofA for the toxic mortgages that they sold Fannie and Freddie. I guess the Government housing agencies are admitting that they did not know what they were doing. The SEC settlement is for $1 Billion and change. Fannie and Freddie have lost $108 Billion since 2008 and just requested another $5 billion bailout- all at taxpayer expense The housing agencies have been completely ignored by the Obama administration. Franklin Raines, who was head of Fannie Mae, received a $240mm golden parachute when he resigned from the agency. He currently is an economic advisor to the Obama re-election campaign. Trying to blame a new monthly service charge on the GOP is a waste of time. I am like the community banker you quoted earlier. Don’t do business with companies too big to pay attention to you. All the big boys know how to do is generate fee income. They no longer lend money even though their cost of funds is zero. I like to do business with people who know my name.
bob from account temps
October 3rd, 2011
12:32 pm
fire your bank and join a credit union if you want free checking and no fee debit cards!!
ken
October 3rd, 2011
12:32 pm
BA is laying off 30,000 employees because of GOVERNMENT REGS
bob from account temps
October 3rd, 2011
12:34 pm
amvet – you have no idea what tax rate price pays so stop the bs.
Jay
October 3rd, 2011
12:36 pm
BA is laying off 30,000 employees because of GOVERNMENT REGS
Yeah, either that, or the fact that BofA paid $4 billion for Countrywide, a company that was already tanking and has stuck BofA with $30 billion or so in liabilities. It’s a deal that the WSJ calls the worst deal in history.
http://blogs.wsj.com/deals/2011/06/29/bank-of-america-countrywide-worst-deal-in-history/
Steve
October 3rd, 2011
12:39 pm
Use you debit card at a BofA bank to draw cash, and you are not charged a fee. Then pay cash for your daily purchases. Write checks when you can’t pay cash or put it on a credit card that offers 30 day no interest. Then pay off the credit card promptly.
Atlanta1
October 3rd, 2011
12:47 pm
Exactly right Jay… And guess what? I have been considering moving three rather significant accounts over to DCCU anyway. This was the tipping point. All over $60.00 a year.
Dumb BOA. Very dumb…
Matti's Good Sense
October 3rd, 2011
12:49 pm
If GOVERNMENT REGS “kill jobs” as Congressman Tom Price is always yammering, then why is he trying to add another regulation to his own by pushing for a new amendment to the Constitution? Hmmm…. Rather than just DO the job he was hired to do, work & compromise to balance the budget, handle what needs to be handled, and pay our national bills, he is busy saying, “NO WE CAN’T!” (…work with anyone to get anything done). He’s pushing for a Balanced Budget Amendment, that would cost countless millions of dollars, and many years to get through enough state legislatures to pass, but he’s claiming that he NEEDS that extra layer of regulation — on his OWN JOB — in order to perform it correctly. The idea of professionals policing themselves is now suddenly lost on the good doctor! Odd, huh?
Obozonomics
October 3rd, 2011
12:49 pm
Jay, please look at who the major contributors to the Obozo campaign were, big banks and big business, not funny FACTS. But I bet it will be way different this time around… LOL
Mo's mom
October 3rd, 2011
12:51 pm
I closed my BofA account 2 weeks ago because they were charging me $8.95/month simply because I did not have direct deposit. And then news came out about this $5 fee to use the debit card. They can have it.
I’ll stick with USAA. No fees plus I get all of my ATM fees, debit & interest rebates every month.
Joe
October 3rd, 2011
12:54 pm
This is yet another burden placed on the middle class thanks to Obama and the democrats… The middle class will be predominantly hurt by this. And Jay it’s also disingenuous to say we would pay this anyway because you wouldn’t have to if the government wasn’t forcing these regulations on the banks.. banks are just like any other business. If the government does something to cost them money they’ll pass it right on to the consumer…Running cover for Obama won’t work on this one Jay…..
Kamchak
October 3rd, 2011
1:03 pm
Freddie Mac and Fannie Mae were the largest purchasers of subprime debt because as Government agencies…
Really?
Between 2004 and 2006, when subprime lending was exploding, Fannie and Freddie went from holding a high of 48 percent of the subprime loans that were sold into the secondary market to holding about 24 percent, according to data from Inside Mortgage Finance, a specialty publication. One reason is that Fannie and Freddie were subject to tougher standards than many of the unregulated players in the private sector who weakened lending standards, most of whom have gone bankrupt or are now in deep trouble.
During those same explosive three years, private investment banks — not Fannie and Freddie — dominated the mortgage loans that were packaged and sold into the secondary mortgage market. In 2005 and 2006, the private sector securitized almost two thirds of all U.S. mortgages, supplanting Fannie and Freddie, according to a number of specialty publications that track this data.
Fedup
October 3rd, 2011
1:03 pm
Does this mean retailers are going to lower the cost of thier goods? Of course not! The regulations just shifted the profit away from banks to retailers unless of course the banks charge the fee for the card. It did nothing for consumers.
GT
October 3rd, 2011
1:43 pm
I was never one to take the streets back in the 60s and 70s but in those days the press did the job for me. I didn’t’ know about Watergate, a newspaper in Washington D.C. against all powers to be, told me about it and then it became obvious we had a real problem on our hands in executive office. “Occupy Wall Street”, is a bird of a different color. We don’t have a transparent press that has no agenda but the truth anymore. Money has tainted everything which is a little of what the protest is all about. In this void of leadership banks have totally become the judge and jury for our economy. We gave them a license to steal when we bailed them out and told them with a kiss on the cheek they were too big to fail.
Before Watergate there were citizens taking the streets. The war was immoral yet people pretended not to see that. Segregation was wrong but people pretended not to see that either. What has always interested me is the Tea Party which is very much what is wrong with this country thinks they are the harmed citizens and they are the ones taking it to the streets. That would be like seeing Nixon taking over a dean’s office at Harvard in his day. The Tea Party are and have been the very fabric of what has and is going wrong with this country. They were the backers and still are of bigotry. They are the backers of big business, small government. “Occupy Wall Street” may be the first real citizens revolution in decades, and this time I am 100% behind them.
OneFreeMan
October 3rd, 2011
1:46 pm
Use cash. I can only spend what cash I have on hand. I like the idea of not carrying ALL the money I have in the bank in my pocket(debit card). Too easy for me to spend. I can’t spend it on Amazon or other online stores.
Money is the be saved not spent….Spent as less as possible by using cash only.
GT
October 3rd, 2011
2:02 pm
OneFreeMan points out an interesting point. Debit cards are fueling the internet, but do banks go to the businesses to pay for it? Nope they go to the citizen. We blame the bank which we have no recourse, they are above the law, too big to fail,and let the companies that use their services for huge profits go without a whisper.
Obama is over
October 3rd, 2011
2:24 pm
Kamchak @ 1:03
I do not understand your point. Fannie and Freddie currently own $5.1 Trillion in home mortgages which represents about 1/2 of all housing debt in the U.S. They continue to hemorage money at taxpayer’s expense and no one has addressed the system on how to make it stop. They are just as guilty as the banks are in creating the cycle of greed that caused the housing bubble in the first place. I really don’t care how we got here, I am interested in how we move forward. The next big scandal will be the losses incurred by Sallie Mae for student loans. Here’s an idea for a Bookman chart: How much did college tuition go up as the Government started to guarantee student loans?
Herman
October 3rd, 2011
2:26 pm
No biggie. I’ll now use my discover card and pay off the balance each month. No interest charge and they pay me cash back to use it. Bye bye debit card.
Carmen Scents
October 3rd, 2011
2:27 pm
I foresee a day when conservatives are able to cut taxes to nearly nothing. I see the next day, when EXXON, BoA, the Southern Company, et al., magically increase their fees/prices to absorb the extra coin.
In other words, all this talk of government money grabbing is an exercise in futility for the consumer.
Kamchak
October 3rd, 2011
2:31 pm
Kamchak @ 1:03
I do not understand your point.
I’ll act shocked and awed if it will make you feel any better.
JH
October 3rd, 2011
2:45 pm
Hey, relax everyone. If you get the chip in your hand, they won’t charge you the fee.
pm
October 3rd, 2011
3:46 pm
If only a five dollar per month debit card fee was our economy’s only problem. Hey, Genius, 5 bucks is only 1 buck in 1970 money, (dork)wad of cash.
Robert
October 3rd, 2011
4:11 pm
I haven’t used a debit card in years. With my capital one card I get 1.5% cash back on all purchases and no fees. As long as I pay it off every month I don’t get charged any interest. You also can’t rack up rediculous overdrafting fees that BoA likes to give out.
Have you heard of BoA’s “keep the change” campaign? It rounds every debit purchase to the next dollar, and desposits the change in your savings account. It’s simply a way to cause more overdrafting penalties, which no benefit to the consumer.
dbm
October 3rd, 2011
5:13 pm
Sometimes government-imposed maxima and minima can work in counterintuitive ways. I don’t know if that applies here or not.
This libertarian wants to get away from government action against anything except direct or indirect physical force. I don’t see how charging businesses high fees constitutes physical force. Under a free market, the businesses would have the option of refusing to accept the cards, or charging customers a fee for using them, and of explaining why to the customers. I don’t know whether current law allows them those rights. I understand there are a lot of restrictions on what businesses can say. This leads to the more general question: is there a way to achieve reform here by repealing one or more government interferences instead of piling on another one?
jeff greene
October 3rd, 2011
6:08 pm
here is the real market at work
..just thought you should know that retailers, who know consumers best, are building a B of A alternative solution right now …
PB Microsavings is re-creating the old “house account” for customers to leave funds on deposit at the retailer..no fees.. .no charges and real interest in the form of additional buying power
So the consumer and retailer will get the last laugh and leave the banks with lots of empty bricks and mortar.
tundiener
October 3rd, 2011
10:00 pm
I think this is a big scam because BOA promotedus to use our debit cards more by even offering keep the change. Most banks promoted using debit cards so much that many places will not take personal checks any more. Most gas stations, restaurants, fast food joints, etc have signs that they accept cash, credit or debit only “NO CHECKS”! The banks got us to use these cards and helped the people loose other options of payment at places they shop. They think they have us between a rock and a hard place, but people can make a difference and put the hurt back on the banks. I’ve got 2 boxes of checks that have not been opened in 3 years and I’m about to open them. Also when I need more, instead of giving the bank money to produce me more checks I’ll give my money to another company or pay for a check writing program for my computer and produce them myself. You can get the paper for writing checks at any office supply store. My contributing to the bank will be giving them more paperwork to process, who knows they would have to rehire the people they laid off for processing checks because of the electronic payments. By the way I will want copies of all checks I wrote and an image will need to be on file for years…lol
christy
October 4th, 2011
8:00 pm
the sad part is, if you have money you dont have to pay the fee or any fees or for your checks or anything at that… its the ones who cant afford it that is getting the sh*t end of the stick… if you dont carry and all the time balance of over 10,000 and have checking and savings then your nothing to them and they will suck you dry. if they want to charge then charge everyone not just the poor… its like movies stars they have all the money in the world but they dont have to pay for things but the poor get left fitting their bill.. its BS
jimfromcalif
October 4th, 2011
8:41 pm
I think EVERYONE should pull their money out of Bank of America and let them go broke. The government made a huge mistake in bailing any of them out.
Pearl Rodgers
October 4th, 2011
9:32 pm
En
Enter your comments here I think this is awful, what if i be somewhere and almost to run out of gas and needed to use my debit card to pay for my gas and a extra 5dollars thats crazy .I’M leaving Bankofamerica soon as possible .Time is to hard i’m not making no money now beside having to give this dam bank 5dollars come on now .This bank is not hurting for money surely
Andy
October 5th, 2011
1:42 pm
You don’t need to change your spending habits (like writing more checks) – simply switch to a credit union! They offer the same services as banks, but with fewer fees and better rates. I have a free checking account with CDC Federal Credit Union and there’s no debit card fee. I switched years ago and haven’t had any issues since.
JTweetyJ
October 7th, 2011
10:57 am
Why is it always the consumer that has to ultimately pick up the tab on everything. Who do we pass the fee onto? Do we not have a right to make a profit also. Bank of America should be ashamed of themselves to stand and pontificate to the American people that they have a right to make a profit…………who salvaged their behinds in the first place?