Banks to Introduce Monthly Fee for Debit Cards

August 18 00:00 2011

New York, August 18 (thealphareporter.com) – A monthly fee for debit cards is on the anvil with many banks introducing it from October this year. Although it is still in the testing stage most people are apprehensive of this additional burden on their sagging incomes. Leading banks like Wells Fargo & Co. And J.P. Morgan Chase & Co. is contemplating the introduction of a monthly fee of $3 for debit cards if they are used for purchasing but not for use in ATMs.

On the other hand, some banks like SunTrust Banks Inc. and Regions Financial Corp. are planning to impose a monthly fee of $5 and $4 respectively for use of their debit cards if they are used for purchases. TCF financial Corp. is going a step further by introducing an additional charge if a customer uses his debit card more than a specified number of times.

The introduction of monthly fee is one of the steps that banks are considering to make up for the loss of hundreds of millions that might take place as a result of the directive of the Federal Reserve to lower the fee for debit card transactions. These restrictions were imposed with the introduction of the Durbin amendment to the Dodd-Frank law after the mortgage meltdown. Many other banks are avoiding the imposition of the monthly fee but they are stripping the rewards.

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