Bank of America Debit Card Fee Hike Just the Beginning

Categories: Whatever

bofa-fees.jpg
In case you hadn't heard, Bank of America announced that, beginning in 2012, it was going to begin charging $5 per month for account holders who used their debit cards for retail transactions. The move is in response to the federal government via the Dodd-Frank bank reform law putting a cap on so-called "swipe" fees banks could charge retailers when a customer used a debit card for a purchase. The charge is expected to generate about $3 billion per year for the banking giant.

As one might expect, the outcry from customers and critics was vocal and widespread. Current customers were all over Twitter claiming they would be closing their accounts in protest. Senator Dick Durbin (D-Ill.) hammered the institution in a statement saying, "It seems that old habits die hard for Bank of America. After years of raking in excess profits off an unfair and anti-competitive interchange system, Bank of America is trying to find new ways to pad their profits by sticking it to its customers."

But, despite all the calls for protest and angry tweets, it is likely bankers will find similar charges elsewhere. Bank of America is the first, but they will not be the last.

Chase has already been testing $3 debit card fees and raising rates on fees charged to non-account holders for use of bank ATMs. Other large banks are planning similar moves in the coming year.

And it isn't as if they are losing the ability to charge all "swipe" fees. Those fees are simply being capped at about half of what they were previously, half is better than nothing. It is worth noting that many of these larger banks also received massive bailouts from the federal government.

None of this accounts for the monthly checking account fees, overdraft charges, overdraft "protection" fees and charges for using ATMs that don't belong to your bank. It's amazing, but not terribly surprising, that with all the technology and automation that has happened in banking over the last few years that fees have seemingly increased while interest rates have gone down.

And if you think smaller banks and credit unions are the answer, don't count on it. While they are exempt from caps on "swipe" fees for now, there is growing concern that retailers will eventually stop honoring cards from institutions with higher "swipe" fees causing those banks to simply find other ways to keep the income flowing, like debit card charges.

Ultimately, the choice will come down not to who charges the least, but who provides the best services for the monthly fees they do charge. Bank of America may seem like the evil empire right now, but other banks will follow suit and, unless you choose to put your money in your mattress, you'll have to pay the fiddler eventually.

In (dis)honor of the new Bank of America charges, we give you one of the most unintentionally hilarious moments in the history of the institution: One bank.

My Voice Nation Help
34 comments
black card services 123
black card services 123

This video through many bank task process really wonderful. I known many useful information gather form here!

Houston Truck Bedliners
Houston Truck Bedliners

According to the U.S. Environmental Protection Agency, cleaning a vehicleusing soap and a water hose can waste up to 116 gallons of water per car wash.The dirt and debris stuck to an automobile’s surface can be a combination ofsoils, oils, grease and other polluting compounds. The combination of dirtysoap and excess water runoff resulting from a car wash can contaminate localsoils and waterways.

Acolvin Geo
Acolvin Geo

I remember a Houston in the 80s before there was branch banking; then there was ATMs and no fees -- when there were savings accounts with no fees, and checking accounts with no fees. Then the fees started...and kept on, nickle and diming their way to acceptance. Folks kept putting up with them. When they started with the monthly service fees for savings -- for savings, mind you, that's when I said, bye bye to banks and went to a 99% cash-only life. Yes, I have to live within my means. What a concept!  Poor? Hardly. Everything I own,  I own, and I've learned to shop smart, not impulsivly.  Banks teach you to want more, and more. Banks do not create wealth; they create prisoners of an false-security. I have many friends who are learning the hard way about the things that matter most, while loosing the things they treasured. Tell bankers to kiss your ass!

CAMSHEEL
CAMSHEEL

 THE BANK WILL CLOSE I HOPE EVERYONE WILL CLOSE THERE ACCTS. WITH B.O.A. THIS BANK DOES NOT WANT YOUR BUSINESS BECAUSE IF THEY DID THEY WOULD NOT CHARGE A FEE. SO LONG B.O.A.  

car seat
car seat

I'd rather pay the $2-$3 fee to pull out cash from another ATM than pay bank fee and $5 per transaction fee to BoA. I'm switching to another bank and started researching, there a few really good banks out there starving for customers.

Guest
Guest

there are already 5 other big banks that have started to charge debit fees and raising other fees like atm and maintenance fees because of durbin and the financial reform you should stop whining  about the banks and start complaining to durbin and the democrats

Guest
Guest

bofa customers should stop whining about debit card fees blame dick durbin bofa is not the only bank to start charging debit fees and wont be the last if its not debit fees banks will find other fees to replace this

women shoes
women shoes

I'm from NJ/NY/PA area, pretty much all of NJ somewhere near NYC and Philly, a huge population area, and I rarely ever see BoA, I see lots of PNC bank, though they are more regional, and I see TD bank who seems to be pretty big, and then the occasional smaller banks like key bank, and sovereign, and some credit unions, that's really it. If bank of america isn't so popular in that part of the country where a good 30 million or so live, then I don't see how it really is everywhere.

Jake Hlavaty
Jake Hlavaty

i left wells fargo.high as hell interest rates on almost everything.capital one now

Jake Hlavaty
Jake Hlavaty

I closed my wells fargo and switched to capitalone. Boa blows

tablet computer
tablet computer

“I sincerely believe that banking institutions are more dangerous to our liberties than standing armies… Already they have raised up a moneyed aristocracy that has set the government at defiance…The issuing power should be taken from the banks and restored to the people to whom it properly belongs.” – Thomas Jefferson, from Letter to John Taylor, 1816, Letter to Josephus B. Stuart, 1817, and Letter to John W. Eppes, 1813

Mit.gc
Mit.gc

Dodd-Frank piper has come to be paid. The demoncrats never think about consequences.

FigDoo
FigDoo

Guess its time to stop using banks altogether, jsut start paying cash for everything. Enough is enough.

real-privacy.edu.tc

mae k
mae k

I am closing my account because I recently got charged $12 for maintenance fee?! REALLY. Now because of that I am short $12 getting my way to school and I have to starve myself one day out of the week because I didn't have that $12 to buy me LUNCH. Thanks BOA you really do represent AMERICA.

Macgyrl
Macgyrl

I wouldn't say other banks will follow suit, just because one can do something doesn't mean they will or should. There are plenty of smaller banks and other institutions out there that would love the increase in clientele by us BoA customers leaving. That increase alone would suffice. Not everyone is money hungry corporate whiners as BoA or their ilk. 

Myfunnybrianshow
Myfunnybrianshow

My Mom said she is closing her accounts. She is MAD MAD MAD! bye

mitchell
mitchell

 GOIN BACK TO THE OLD WAYS,DIG-HOLE OR GET YOU A SAVE!!!!!!!!! ONLY IDIOT WILL PAY FOR THESE SERVICES!!!!!!!!!! THE GOV-OBAMA SAVED YOU SOB!!!!! SIGNED OLD WAYS

frustrated
frustrated

Thank you Dodd-Frank. This is just another example how EVERYTHING that democrats do in the name of helping the little guy eventually just hurts the little guy more. Democrats should not be allowed to write laws that effect the economy.

dewalt sale
dewalt sale

Why do people still have bank of america anything?

Bill
Bill

"Premium Customers," aka high net worth individuals with multiple accounts, will be exempt from swipe fees ay BofA and Chase and Wells Fargo.  So the less affluent end up paying more for basic banking services, driving many back to cash-based transactions.  This will lead to more check-cashing places, pay-day loan shops, and other "banking convenience services" geared towards the poor.  There is money to be made if you have the stomach to do it.   

rgwalt
rgwalt

I predict that customers will leave in droves, to other banks without the fees.  BoA will be forced to drop or change their fee scheme because it will cost them more in losing accounts than they will gain in fees.  Other banks will take note and not follow suit.

At least this is my hope...

Jeparmer
Jeparmer

BYE, BYE BOA, WILL BE CLOSING MY ACCOUNT SOON.

Emmy Zokko
Emmy Zokko

NO, guest! We absolutely loathe the banks for doing that!

Durbin's trying to do the right thing.

Emmy Zokko
Emmy Zokko

Maybe BOA should just take it, versus trying to squeeze more money and getting a huge foot planted between its legs for trying to be greedy

Wyatt
Wyatt

To regulate financial markets, where deregulation contributed very significantly to the most recent recession???

thetruth
thetruth

 The banks are the ones to blame.  The greedy bastards created the "need" for such a law in the first place.

Tamecia Henderson
Tamecia Henderson

Possible solution: fix your lunch at home and it will save you money during the week. That's what I started doing.

Macgyrl
Macgyrl

I don't think it's the Democrats at fault per say, as much as it's the Republicans usurping or finding the gaps in the laws in order to make more money and starve the middle class. BoA does not need this money if they did they'd be going after all the accounts. 

OrderOfMen.com
OrderOfMen.com

I'm afraid I disagree.  Either they won's care if others leave or other banks will do it too.

Jeff
Jeff

I was thinking "blood sucking leaches" but, yeah, bastards will do.

Hbeard85
Hbeard85

And how is she supposed to buy the ingredients to fix lunch? That costs money too, even if not as much.

Now Trending

Houston Concert Tickets

From the Vault

 

Loading...