Just Say No

to Debit card fees

Bank of America will start charging debit-card users $5 a month to pay for purchases. The move comes as the cards increasingly replace cash and as banks look for ways to offset the loss of revenue from a new rule that will limit how much they can collect from merchants.

Paying to use a debit card was unheard of before this year and is still a novel concept for many consumers. But several banks have recently introduced or started testing debit card fees.

The story is portraying this as some sort of scheme that’s trapping debit card users. So switch to banks that don’t charge fees.

Tell your friends. Let’s try to get everyone to switch away from banks charging these fees over to banks that don’t charge these fees. Then let banks decided whether or not to charge them.

Just thinking out loud, here.


  1. Yup, another Obama plan has backfired. The banks have to rake in the moola in ways that skirt Obama’s regulations. This is one way.

    Unfortunately, switching banks is like playing blindfolded musical chairs.

    Eventually there’ll be none left to sit on without paying the piper.

  2. The Durbin Amendment to Dodd/Frank basically took money out of the banks’ pockets and gave it to the big-box retailers. Did anyone in Congress expect the banks to just accept that loss of revenue and not find ways to reclaim it?

    Congress was told up front by the banking industry that the reduction of swipe fees would invariably lead to increased fees somewhere else or to the end of affinity (think rebate) programs. Congress either thought the banks were bluffing or decided that Wal-Mart was a more lucrative source of campaign donations than the banks.

    Anyone who works in the financial world (Hello!) would have told you at that time that this would be the banks’ response to the Durbin Amendment.

    The truly scary part is that Congress assumed that the banks would just eat the loss in revenues.

  3. B of A bought my local bank years ago. I just won’t be using that debit card for anything except cash.

  4. Bram,

    Does taking cash from their ATM count toward the “use”, which incurs a fee?

    Better getting a “withdrawl” slip and going to a LIVE cashier. That way you’d be supporting the employees jobs too.

    I was a B of A customer 12-years ago when I lived in North Carolina. The local branch was a 10 minute walk away from my house and the staff were super. Then one day (2001) the branch banged up, the employees sent to other branches and I had to drive 30 minutes to the nearest branch. That was over TEN years ago.

  5. Pingback: The Durbin Fee
  6. One of my accounts is at the local BOA. I rotuinely use my debit card for online purchases when I’m overseas (since late June I’ve been enjoying the vibrant culture and ambiance of central Iraq again——except for the mortar attacks LOL!).
    When I’m home I use it for a mixture of online purchases and cash at the ATM.

    If BOA starts charging me a fee for using my money, they’ll likely find me moving my business elsewhere when I’m home on leave again. Thanks you Socialists……….er………I mean Democrats!

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