Wed. Jun 3rd, 2020

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Debit Card Fee Backlash Has Banks Looking Elsewhere For Your Money

3 min read

Recently Bank Of America had announced they were going to charge a $5 fee to use their debit cards. Obviously their customers had some alternate thoughts on the matter and the very few times protests actually work, BoA pulled back. Today they announced that they will no longer be pursing those fees.  Bullet dodged…. for a while.

The banks were pursuing these fees for a reason, they need the money. Their fee heavy services are becoming obsolete, electronic efficiency is not a money maker as paper was, and the banks need to make up for giving money to people who never should have been given it in the first place to buy things that they can’t afford. So us customers need to flip the bill whether we like it or not. The debit card fees were the first attempt at this. Other fees are coming.

Here’s what I would see a bank looking to do around checking accounts or debit accounts that have a card associated to it. Debit cards are very different from credit cards. One is your money and the other is the bank’s money. When it comes to fraud recovery, credit cards is where you need to make online purchases as the bank’s tend to take care of that without too much hassle. However if your debit card gets compromised, kiss your money goodbye in most cases.

  • FEE IDEA – Additional fees for Protection Services for Debit Cards

Free checking and other deals to get new customers in the door are going to be gone if they aren’t already. Debit Card use is going to be the primary method going forward. One way to get more money is to adopt a cell phone contract idea.

  • FEE IDEA – Limit the number of debit card swipes a month, fee for going over or fee to have unlimited swipes.

Accounts need money. Banks want your accounts flush and fat. Debit cards has money more fluid than ever before.

  • FEE IDEA – Minimum balances if you want to use a debit card.
  • FEE IDEA – More fees for cross over account balance protection

You need the card, right?

  • FEE IDEA – Want a new card? That’ll cost ya…

How do you get the money into the bank?

  • FEE IDEA – Electronic deposits free. You come to the counter, that’s a fee.

I could go on and on. Many nickles and dimes to snatch up and grab from you.

Maybe one day I will make a push for Credit Unions, because that’s the golden path to real customer service and fee free worlds. Right now I have a good standing relationship with my big flagship bank I have been a customer with for almost 20 years. The first B.S. fee they try to apply to me I will ask them politely to not stick me with that fee, if they say no, I walk out with a cashier check and head to a credit union.

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