Banks aren't wasting any time adding fees ahead of a new rule that lowers how much they can earn each time a consumer pays with a debit card.
For months, banks such as Wells Fargo and Chase have tested debit card fees in some markets. On Thursday, Bank of America announced that it will charge account holders $5 in any month they use their debit card to make purchases. In months when they use their debit card only at the ATM, they won't be charged $5. They'll just continue to be hit with the ATM fees customers have begrudgingly gotten used to.
To be sure, most banks haven't added a debit card fee -- yet. But the swipe fee rule just went into effect on Saturday.
After Bank of America's announcement, Twitter was a-twitter about debit card fees. When I asked my followers how much they would pay to use a debit card, most said zero, unless they were getting some sort of incentive such as reward points.
A few people suggested using credit cards instead of debit cards, and paying them off at month's end. Frankly, that's the strategy that I've used for years with success, and I see little need for debit cards. Others promoted credit unions.
But if you think about it, the fee isn't outrageous. How many times do you waste $5 in a month, and debit cards are providing a useful service. I think the outcry stems from the feeling that this is the financial industry's latest assault on the little guy. We bailed you out, now you nickel and dime us.
My plan? I'll continue to use my debit card to get money out, and keep it deep in the recesses of my wallet the rest of the time.
