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BOA is at it yet again, debit card monthly fees coming


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#1
crimson

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BOA deserves to go under, and very well might...

Bank of America to charge $5/month for debit cards
By Candice Choi
AP Personal Finance Writer / September 29, 2011

NEW YORK—Bank of America plans to start charging customers a $5 monthly debit card fee.

The fee will be rolled out starting early next year.

A Bank of America Corp. spokeswoman says customers will only be charged the fee if they use their debit cards for purchases in any given month. Customers won't be charged if they only use their cards at an ATM.

Chase and Wells Fargo have been testing $3 monthly debit card fees in select markets. Neither bank has said when it will make a final decision on whether to make the fee permanent.

Customers have been seeing higher banking fees and fewer rewards in the past year or so. The changes come as banks adjust to new regulations that will limit traditional revenue sources.

http://www.boston.co...or_debit_cards/


Equal rights for all in every state



#2
kas

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Yesterday, I was grabbing dollar subs at a couple restuarants. At the one by the nearby university, I watched countless students put one or two sandwiches on plastic. I can't say if it was all cc charges or debit too; but I consider whoever runs this business a fool. Sell subs for around cost and then eat the transaction cost ain't too swift. I shop at many places where five is the minimum purchase to use your credit card.

The following may give those who plan to leave BOA or ditch the debit card some ideas. According to the Boston Globe, Sovereign changes its name to Santander a couple days ago.


Is it time to ditch your debit card?

What’s the least-friendly piece of plastic in your wallet? With Bank of America’s recent announcement that it will start charging for debit card use, upset customers might say there’s a strong argument it’s the debit card – and increasingly, there are better alternatives.

The change in debit card terms has been gradual. Most recently, Bank of America announced its plans to levy a $5 monthly fee for making debit-card purchases starting next year. Banks including Wells Fargo, SunTrust and Chase have already eliminated debit rewards programs, and Chase, PNC and TD Bank are testing ATM fees as high as $5 a pop in some markets.

Given the rising costs, consumers may be better off without debit cards at all, says Dennis Moroney, senior analyst covering bank cards at TowerGroup consulting firm. “I never understood why people wanted debit cards in the first place,” he says.

Credit cards can often be a better fit. Consumers who pay off their balances in full avoid expensive interest charges and fees, often while earning rewards of 1% or better. And as recent data breaches have highlighted, credit cards offer better protections than debit cards in the case of fraud or theft. (When debit cards are stolen, consumers risk losing everything in their checking account if they don’t report the theft before the card is used.)

Banks are also expected to start pushing prepaid cards as a debit alternative, says Odysseas Papadimitriou, chief executive at credit-card comparison web site CardHub.com. American Express became the first major bank to introduce one earlier this year. Of course, most of these cards aren’t free either. Users with the American Express prepaid card get one free ATM withdrawal each month, then pay $2 for each one thereafter – in addition to any fees the ATM’s owner might charge. The Green Dot Gold Prepaid Visa card may seem closer to a traditional debit card: For someone who signs up for direct monthly deposits of at least $2,000 and visits the ATM at least once a week, the card levies no additional fees, according to CardHub.com.

Remember cash? No fees or fine print, and more businesses are offering discounts for shoppers who use it. Of course, if it’s stolen, there’s no way to recover it. So even consumers who go cash-only should maintain a checking account with ATMs convenient to work and home, says Richard Barrington, an analyst at MoneyRates.com, which tracks bank rates.

For anyone who still really wants a debit card, smaller banks and credit unions may be the best alternatives. At online bank PerkStreet, for example, customers can earn up to 2% cash back on their debit purchases, as well as 5% on specific categories, like housing or dining, that change each month. (The bank has 37,000 ATMs throughout the country.) At Sovereign Bank, debit card holders get up to 20% cash back on purchases at more than 1,200 retailers, including Restaurant.com, TurboTax and Brookstone, which is then credited to their checking account.

Readers, would you pay $60 per year to use your debit card?

http://blogs.smartmo...our-debit-card/

Edited by kas, 30 September 2011 - 01:35 PM.

Build the Border Fence


Given a choice, voters in the majority of states have reaffirm The Defense of Marriage Act, each and every time. It was wrong for judges and politicians to enact legal policies that are typically not honored in the majority of states. To be clear to the 'No H8' crowd, many Americans will never except an 'Adam and Steve' union as equal to a traditional marriage. It ain't hatery, they are just living their values.

#3
kas

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According to the Tri, thank all those clueless fibs for reelecting Dick Durbin.

Get ready to pay the Durbin Fee

Sen. Dick Durbin must be forgetting that once you've dug yourself into a deep hole, you'd best stop shoveling.

How else to explain the Illinois Democrat's blustery reaction to the $5 a month that Bank of America Corp. plans to charge some of its customers who use debit cards? The charge, which other banks are likely to adopt, is a direct result of his lawmaking. Call it the Durbin Fee.

Last year, Durbin pushed an amendment to the Dodd-Frank financial regulation package that imposes a sharp cut in interchange fees, which banks charge retailers every time a customer swipes a bank debit card to buy something. That rule goes into effect Saturday. In essence, this strips money from banks and hands it to retailers, who will pay sharply lower fees. There's no guarantee that retailers will pass the savings on to customers.

Bankers told Durbin and his fellow lawmakers last year that the interchange fees subsidize free checking accounts and other services, including the convenient practice of making purchases with debit cards at no charge to the buyer. Slash fees to retailers, the banks said, and they would likely recoup the lost revenue by charging their customers for use of the cards. That's exactly what's happening now.

Durbin claimed that a cut in interchange fees would translate into lower prices and better service at Walmart and 7-Eleven. Funny, but no one's handed us a free Slurpee yet. In fact, the chief financial officer of Home Depot told Wall Street analysts in a conference call earlier this year that she expected Durbin's efforts to result in a $35 million annual "benefit" to the retailer.

Having picked sides in a high-stakes business deal—retailers over banks—Durbin denounced Bank of America for the widely telegraphed result. "Bank of America is trying to find new ways to pad its profits by sticking it to its customers," he said.

Shockingly, banks seek to be profitable. Durbin sought to transfer some profits from banks to retailers. The banks are trying to recoup the lost earnings.

Result of the government intervention: Retailers win, banks lose, and you get to pay the Durbin Fee.

http://articles.chic...cards-retailers
Build the Border Fence


Given a choice, voters in the majority of states have reaffirm The Defense of Marriage Act, each and every time. It was wrong for judges and politicians to enact legal policies that are typically not honored in the majority of states. To be clear to the 'No H8' crowd, many Americans will never except an 'Adam and Steve' union as equal to a traditional marriage. It ain't hatery, they are just living their values.

#4
kas

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Add Citibank to the list of major banks that will mug their customer. What is a hoot, is that I've heard some banks charge those with mega millions a fee to store their deposits.

Citibank Raises Checking Account Fees
Build the Border Fence


Given a choice, voters in the majority of states have reaffirm The Defense of Marriage Act, each and every time. It was wrong for judges and politicians to enact legal policies that are typically not honored in the majority of states. To be clear to the 'No H8' crowd, many Americans will never except an 'Adam and Steve' union as equal to a traditional marriage. It ain't hatery, they are just living their values.

#5
kar522

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Don't Blame Banks For Debit Card Fees--Blame Merchants

Where I am is where I need to be...
Just Another Chicago Born & Raised Kook
If you can't be a good example, then you'll just have to be a horrible warning.~Catherine Aird

#6
kas

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Carrying plastic maybe more of a headache, then the greenbacks.

Posted Image

DEBIT TO SOCIETY: A few of the hundred-plus alleged scammers involved in a massive fake-credit-card ring are led into Queens court.
Singh allegedly received blank credit cards and account numbers from his contacts and had a whole crew of henchmen to help cash in with the phony plastic.


Credit-card mega-‘$wipe’

Jail is in the cards

In the biggest identity-theft bust in US history, the NYPD and Queens DA brought down a network of restaurant workers, bank tellers and other store employees who stole their customers’ IDs and used bogus credit cards for high-end purchases.

The five independent Queens fraud rings -- with ties to Europe, Asia, Africa and the Middle East -- stole $13 million through credit-card fraud and outright robberies, officials said.


Build the Border Fence


Given a choice, voters in the majority of states have reaffirm The Defense of Marriage Act, each and every time. It was wrong for judges and politicians to enact legal policies that are typically not honored in the majority of states. To be clear to the 'No H8' crowd, many Americans will never except an 'Adam and Steve' union as equal to a traditional marriage. It ain't hatery, they are just living their values.

#7
kar522

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A Debit Of Gratitude To Bank Of America

Its planned $5 fee for using a debit card has driven out into the open other fees that were long hidden to consumers.
Where I am is where I need to be...
Just Another Chicago Born & Raised Kook
If you can't be a good example, then you'll just have to be a horrible warning.~Catherine Aird

#8
kar522

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More Banks Say No To Debit Card Fee

Other big banks have decided not to follow Bank of America's unpopular example. Meanwhile, B of A is reportedly making it easier for customers to avoid the fee
Where I am is where I need to be...
Just Another Chicago Born & Raised Kook
If you can't be a good example, then you'll just have to be a horrible warning.~Catherine Aird

#9
kar522

kar522

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B of A May Reconsider Debit Card Fee

A news report says the hugely unpopular $5-a-month fee will be retooled so more customers can avoid paying it.
Where I am is where I need to be...
Just Another Chicago Born & Raised Kook
If you can't be a good example, then you'll just have to be a horrible warning.~Catherine Aird

#10
WingsOverVA

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RedBox movie rentals is now saying just the opposite, that the new rules mean that they (the merchant) have to pay more for debit card transactions, and so they are raising their rates:

New Daily DVD Rental Price

Redbox is making an announcement about its prices today, and we want to make sure that you hear it from us first.

Starting on Monday, October 31, the daily rental charge for DVDs will change to $1.20 a day.* The price change is due to rising operating expenses, including new increases in debit card fees. Daily rental charges for Blu-ray™ Discs and video games won't change.** Additional-day charges for DVDs rented before 10/31 won't be affected, either.

In order to make the transition easier, Redbox will discount the first day of all online DVD rentals to $1.00 from 10/31 through 11/30. Additional rental days will be $1.20.***

If you have any questions, please visit redbox.com/pricechange. There, we've provided additional information.

This marks our first price change in more than eight years as we work hard to keep prices low for our customers.


The new fees they are referring to:

Many in the banking industry had warned that higher fees to consumers would follow the Dodd-Frank's Durbin Amendment, which went into effect on Oct. 1. The amendment capped debit card interchange fees for merchants at 21 cents per transaction earlier this year. Before the amendment, debit card companies charged merchants an average interchange fee of 44 cents per transaction.


To Frank Lynn Sikes 1958-2008

#11
kar522

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Bank of America Nixes $5 Debit Card Fee
Where I am is where I need to be...
Just Another Chicago Born & Raised Kook
If you can't be a good example, then you'll just have to be a horrible warning.~Catherine Aird

#12
kar522

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Hate Your Bank? Saturday is 'Bank Transfer Day'

Big banks may have scrapped plans to charge fees for debit card use, but many customers are still angry and taking their money elsewhere.
Where I am is where I need to be...
Just Another Chicago Born & Raised Kook
If you can't be a good example, then you'll just have to be a horrible warning.~Catherine Aird

#13
kas

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Please, the typical big bank customer that voted for the buffon, dumb dick and Paddy won't have a clue even if their bank use large letters and simple words. The goals of the leeches are for the mortgage holders to eat most of the loan and for the taxpayers to do the same for student loans.

The 'biggie' credit union locally caters primarily to teachers and others that work for a school district; but if you live in certain zip codes, you can be a member. You deal with someone through a video screen that works in the basement, the line is always loooooong on payday, better not be a stupid lazy Obama minion and forget to have the slips completed before you send that tube along, fewer locations compare to most banks around the St. Louis area and finally, forget banking at your local Schnucks or another B&M.

Durbin calls on banks to simplify fees
Build the Border Fence


Given a choice, voters in the majority of states have reaffirm The Defense of Marriage Act, each and every time. It was wrong for judges and politicians to enact legal policies that are typically not honored in the majority of states. To be clear to the 'No H8' crowd, many Americans will never except an 'Adam and Steve' union as equal to a traditional marriage. It ain't hatery, they are just living their values.

#14
kar522

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No board word censor??? -lol-

A Letter from Bank of America
An Apology to Our Customers

NEW YORK (The Borowitz Report) – The following letter was sent today by Bank of America to all of its debit card customers:

Dear Valued Customer:

As most of you probably know by now, last month we instituted a $5 monthly fee for all of our debit card users. To say that what followed this decision was a shitstorm would be a massive understatement.

Considering that just three years earlier taxpayers had bailed us out with billions of their hard-earned dollars, it’s understandable that Bank of America was compared to a person who, as he is pulled from a burning building, turns and kicks the fireman in the nuts.

That’s why we are writing to you today with a simple message: “Our bad.” And to tell you that we are refunding the $5 to you, effective immediately. All you have to do is pay a simple, one-time $10 refund fee.

You can receive your refund online, or pick it up at your nearest Bank of America branch, where a teller will hand the money directly to you for a simple, one-time $15 handling fee.

If you do visit your branch, feel free to use any of our services, including our state of the art ballpoint pens and deposit slips. (Prices on request.)

Again, accept our apologies for instituting the debit card fee. We have learned our lesson, and we make this solemn promise: next time we squeeze money from you, we’ll do it in a way you won’t notice.

Sincerely,

Bank of America


The Borowitz Report

Edited by kar522, 13 November 2011 - 09:37 AM.

Where I am is where I need to be...
Just Another Chicago Born & Raised Kook
If you can't be a good example, then you'll just have to be a horrible warning.~Catherine Aird




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