Rising Debit Card Fees

September 30, 2011 in Daily Bulletin

Bank of America will begin charging $5 per month to use their debit cards next year. This new fee is seen as a response to new financial regulations enacted by Congress in response to the financial crisis. This legislation cut the amount of money banks could charge businesses for debit card transactions. Thus, this new fee is an attempt to regain some of the money that will be lost by the banks due to these new restrictions. How consumers will respond to these new fees remains to be seen, and it seems that those in the banking industry are also unsure of what will happen. If your bank decided to charge you $5 per month for using their debit card, would you switch banks?

Source: Washington Post