Backlash has Bank of America rethinking monthly debit card fee

Filed in Uncategorized by on October 29, 2011 0 Comments

Following heavy criticism from customers, and especially after rivals Wells Fargo and JP Morgan Chase have announced that they will not go the same route, Bank of America is re-considering a monthly debit card fee.

In September, Bank of America announced that it would charge customers $5 a month if they used their debit cards to make purchases. This set off a public outcry by consumers that now has bank executives rethinking their decision.

Both Wells Fargo and Chase had tested in select markets charging customers a monthly debit card fee but have announced that they will not asses the monthly fee to its customers and get rid of the fee in test markets.

Now, Bank of America is trying to avoid having to charge its customers the proposed $5 monthly fee, offering new, easier ways to do so.

Before the backlash, the only way to avoid the monthly fee, which was introduced to make up revenue lost because of a law that slashes the fees banks charge retailers when consumers swipe their cards, was to keep a minimum balance of $20,000.

However, Bank of America will now waive the fee, which is set to go into effect in January, if customers have their paychecks deposited directly to the bank, by maintaining minimum balances, or by using Bank of America credit cards.

Though it currently has no plans to eliminate the monthly fee altogether, it would not be surprising for the bank to do so if public criticism continues.

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