My Unorganized Territory topic is not entirely local this week, but sometimes a national issue irks me so much that I am compelled to comment on it. I think this issue is one on which most of our readers will agree with me.
And, some of our readers may have an interest in the topic—they may be customers of the Bank of America. Perhaps I shouldn’t be so excited over the BOA’s decision to start charging a $5 monthly fee for the privilege of using a debit card since I am not a BOA customer. But I am worried, as are numerous other commentators, bloggers, and petition-signing citizens, that other banks will follow suit.
According to ABC news, Chase and Wells Fargo are testing $3 fees in limited markets. Well, I hope those limited markets raise holy heck and say heck no to those fees!
That is what the Bank of America is hearing. There is an on-line petition opposing BOA’s move to start charging this fee in 2012. To date the petition has accumulated something like 135,000 signatures. I hope the bank listens.
But I doubt it. I really think that consumers need to vote with their pocketbooks. If you are a BOA customer, switch to a bank that does not—and pledges not to—charge a fee for use of a debit card.
I understand that BOA is doing this in response to the recently passed Durbin Amendment, which limits the amount that banks can collect from merchants for debit card purchases. The so-called “swipe fee” that banks collect at the point of sale. The legislation capped the fee that businesses could collect, cutting it by more than half—good news for businesses, especially small businesses.
But bad news for the banks. But perhaps not. Perhaps they will just enact a new fee like BOA to recoup their losses.
Unless consumers speak up loud and clear. So that is what I’m doing. Sorry banks, I just don’t believe it costs you that much to handle my money. I can’t believe it costs more to handle an electronic transaction than it does to process a check. Which is what I would go back to doing—writing checks for everything— if this fee becomes commonplace.
I know that $5 a month is “only” $60 a year. But that $60 a year equals a week’s worth of groceries or the filling of a prescription. To some people, that $60 a year could really hurt.
And according to the Christian Science Monitor, whose reporter had more time to research the new fee than I did, it won’t matter if you select credit or debit at the register. In this modern era that practically makes it impossible to function without a credit card (have you tried to rent a car or book a flight without a credit card?), many people choose to use a debit card instead of obtaining a debt-tempting credit card.
Also, the charge will be applied whether you use your debit card once a month—or 20 times. And, customers with “certain premium accounts” will be exempt from the charge. I’m guessing the folks that can afford the $5 monthly fee the least are not the ones with “premium accounts.”
Finally, my concern is that the fee will be $5 a month when it is enacted in 2012. Have you noticed that ATM fees have slowly begun to creep upward? First it was free to use our debit cards to withdraw our own money. Then it was a dollar; then two. I have seen ATM machines that now charge you $3 to access your cash.
If consumers don’t speak up and tell financial institutions that this fee to use our debit cards is unacceptable, that $5 fee will also grow.
Forget down with Wall Street— down with debit card fees!
Alas! How deeply painful is all payment!
Lord Byron
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