Skip to comments.US Banks Begin Charging Debit-Card Fees
Posted on 08/19/2011 10:33:05 AM PDT by throwbackEdited on 08/19/2011 11:57:37 AM PDT by Sidebar Moderator. [history]
NEW YORK -(Dow Jones)- Wells Fargo & Co. (WFC) is joining a growing number of banks that are introducing or testing a monthly fee for debit cards, casting around for revenue lost to debit-card regulatory restrictions.
Wells Fargo, the nation's second-largest bank by deposits, will charge a $3 fee for debit and automated-teller-machine cards as of Oct. 14 in several states if such cards are used for purchases (but not for ATM usage). The bank said it is a pilot program, and it will monitor how people respond.
(Excerpt) Read more at foxbusiness.com ...
Idiots. We are headed back to a cash carrying society, and of course many of us will be carrying more than just cash — the lead is the heavier of the two.
Since we pay off our credit card every month, we'll just do it that way.
Recently I found out my bank had been charging me a Fee of $1 a month just for the privilege of having my debit card linked to my savings account.
At some point I think there will be a real opportunity for small community banks to come up and fill a need for those that want no frills accounts.
Guess we will see.
It is important that their “TEST” FAIL!
Write, phone, complain!
Close your accounts!
Make large transfers to your credit union!
I like it. This time the unintended consequences of stupid federal legislation is a retreat from the centralized trackability of every single little payment made in America. Not what the bureaucrats would have been looking for at all.
Knew it would be Wells Fargo. Hate that bank.
I use cash. They can shove their Debit card where the sun don’t shine.
People will respond by going back to using cash, and then it’ll be harder to track our purchases.
Doesn’t the ‘test’ have something to do with new punitive laws against banking in those states?
I hope is crashes.
“Knew it would be Wells Fargo. Hate that bank.”
A female coworker of mine used to call them “Well F* Me.” I loathe Wells Fargo. There were several times they stole money from me, including “accidently” adding hundreds of dollars of annual fees to my account. I eventually got that straightened out, but I got tired of my balance saying “Depostit, Deposit, Deposit” and then the running total reading less than the initial starting amount, without giving me access to my money. They also refused to close my account when I tried at several branches because “the computers won’t let us” even though I was allowed to withdraw my account to zero, and get a fee for having less than I was supposed to.
I also used Bank of America (many years ago, same time period), and they outright lied to me on several occasions. I will never again use either, but Wells Fargo is by far the worst Bank I have ever done business with, ever.
Idiots. The ATM card has saved lots of money for banks. Less tellers needed. Also, when debit card is used, the transaction clears faster, reducing float. In fact, when they were first introduced there was all sorts of incentives to use them.
If they drive customers back to checks or carrying more cash, they are only harming their own bottom line.
No, people will go to banks that don’t charge debit fees.
The brokerage firms, Fidelity, Charles Schwabb et al allow insured cash interest drawing accounts with debit and checking privileges. They also provide no charge ATM access, they pay the fee, at any ATM, any where.
Your checks are deposited directly to the account. It is all on the computer where you can see it all the time. It is secure.
The banks will suffer
“Make large transfers to your credit union!”
Oh yeah, I moved from a large back to a CU and I’m loving it: they treat you like people for one thing.
“People will respond by going back to using cash”
“and then itll be harder to track our purchases.”
The government is saying those using cash are “potential terrorists,” I wonder how this fits into their plan.
Nothing is done by accident, nothing.
They sure do, and they halved my interest rates on the balances I transferred to them!
Amazing, been with WF for over ten years and can’t find one bad word to describe them. I have never had anything but great service.
I think I've used my ATM cards as debit cards twice and each time the bank had to bribe me to do it (one was a pint of Häagen-Dazs ice cream with a debit card use and the other time was a few dollars in their rewards program). Then I immediately went back to my credit card.
A third-party candidate running on a platform of “Elect me and I will regulate bank fees, cap credit card interest, and make sure some of the worst big bank offenders go to jail” will get a whole lot of votes next year.
I’m not saying that’s right, only that’s how I think it will be.
I never had a debit card because it didn’t require ID.
I know plenty of people who are addicted to them. I will carry cash, thanks.
Haha, use of more than one word is allowed! Just kidding. Maybe you’ve just had a lucky experience, or maybe you have a good branch. I don’t know. What I do know is that after years of seeing FReepers say to move to a Credit union (I lurked a long time before joining 3 years ago), I decided to give it a try. It’s so far above and beyond, that’s it’s crazy.
Another Wells Fargo experience. I was paid a settlement years ago (when I banked with Wells Fargo), that my attorney dispersed to me. Because the law office used Wells Fargo, I took the bank to them to have it cashed, because it was drafted on their own checks. They wanted me to wait for a 10 business day (14 day) waiting period in order to have the check cashed, even though it was a computer printed check from a business on their own checks! I walked accross the street (literally), to Bank of America (where I also had an account), and they cashed my check on the spot. I will never, ever have a good thing to say about Wells Fargo, or their banks that look like prisons. Good riddance!
(But, YMMV and if you’re happy stick with what keeps you that way).
Then they tried to get me to make another payment on the paid-off loan. Glad I knew where the paperwork was filed. When I showed them the document that said "Paid in full" they didn't even apologize.
How to guarantee I stay a non-customer.
That's a game they play. I was the new adult leader of a youth group and we'd had our money at a Well Fargo for years. I went in to get the signature cards changed over to reflect the new officers and such only to be told they never look at signatures so not to bother. What?!? I insisted because they hadn't updated our account since the day it was first opened and that had been many sets of officers ago. They put me through the wringer wanting to know about my credit and my house and my husband's info etc. -- I don't think so. They refused to put me on the account and insisted the previous leader come in and speak to them. Uh, excuse me, but about three of them attended the previous leader's funeral! What, was I supposed to dig her up and wheel her in there? Idiots. I finally got ticked off enough and demanded they close the account, which they refused to do, so I promptly wrote out a check for the full balance and dared them to check the signature card. I never set foot in there again and took the money to the next bank down the street.
Agreed, on all points. I had many similar experiences, good riddance!
Pigs. They take tax bailout money , raise credit card rates, stop loaning money and refuse to trim their bloated overhead . There is never enough for these swine.
My little bank knows me by name and always asks about the kids by name. They’re always willing to go the extra step and fix things that may not be their fault or let customers’ stupid mistakes slide. It works both ways - I saved one teller’s hide for a huge mistake she’d made. If you treat people right, they’ll do right by you.
Yes, that is the key, and there are lots of them; friend’s referrals are probably best.
I just happen to search and found a relatively small CU, so I went for it and never looked back.
Wow, that’s a disheartening story. I think this debit fee will bite them in the behind. Allegedly the purpose of the debit card fee is to make up lost transaction fees, which are allegedly to help out if someone get fraudulent activity on their card. Maybe, but surely there are ways to make purchases more secure, and to require people be accountable for their own cards. If it’s simply an insurance program (in one form or another), they could always have people pay for it themselves who choose to have it, like the identity theft insurances that exsist, and do away with transaction fees altogether. There’s more than one way to make money without producing anything (exactly what banks do), and banks are sure to come up with a new one. And if they don’t end up making money through the facilitation of economy, they’ll be bailed out anyway, so it probably doesn’t matter what they do.
I got fed up with banks after they borrowed TARP funds they didn’t need to buy bonds with the taxpayer’s dollar, to gain interest on money that wasn’t theirs, paid for again by the taxpayer, to give themselves bonuses. It’s well documented, and the rape of the American People. But that’s another story.
If you don’t like it, change banks. Let the sheeple pay the fees.
In other words “Hope” and “Change?”
Write, phone, complain!
Too late. The time to do that was last month when the Federal Government authorized this. It was reported, but very quietly, so our representatives would not be bothered by the people writing, phoning, and complaining. Until now, when it is implemented, then the banks have to take the heat. Brilliant.
I don't think it's a regulatory thing up there, though . . . I think it's just a consequence of having so little competition. There are only about 5-6 different bank companies in the entire country, and I can see the U.S. getting to that point not too far in the future.
I ALWAYS use cash. People who use their debit cards, type in their pins, think if they want cash back etc....and hold up the line at the grocery stores or any market line piss me off.
You must not have used Bank of America much because that is the worst bank ever. They kept screwing up on my mortgage payment that I was happy when it was paid off.
I will avoid them like the palgue.
I do think the branch makes the difference. Any check I deposit is immediately available to me.
Y’know, I seem to remember reading about a Depression in the 1800’s (caused by overreaching bankers) where the citizenry took to hanging bankers from gas lightpoles outside their banks. Oddly enough, the remaining bankers were motivated to clean up their acts at least for a little while.
This is one of many reasons I have belonged to Credit Unions over the past 30 years. The banks can all eat crap and die for all I care.
Never too late to vote with your wallet!
Make the practice fail and it will stop!
Voting Dems out of office will also help.
PNC charges you to look up your balance at a non-PNC ATM.
I have. They were a step above WF, and awful anyway, which is why I don’t have patronize them anymore either. (Did for over 10 years).
The per-swipe charge, collected by retailers for banks that provided the servicing, was cut from an average of around 85 cents per swipe, to 12 cents per swipe.
The culprits here were the National Retailer's associations, who lobbied the Democrats to reduce what they claimed was their second largest expense, an expense that was passed on to consumers in the price of goods sold. Theoretically, prices would go down, and they probably will somewhat as retailing is still very competitive. The largest money contributor to the effort to buy favor from Congress was Dayton-Hudson's Target division. Most all large retail chains contributed. The retailers simply provided more bribe money than the banks did, in my opinion.
I have difficulty blaming banks for what is happening, I blame politicians whose services are obviously for sale. I wouldn't be for curbing lobbying, if we had a responsible media then this episode would be reported for what it is-an egregious violation of the public trust and, what should be an unconstitutional over-reach on the part of the Obama administration and Democrats in Congress.
As a business owner, who depends on credit to keep the doors open, I'm not happy with anything that pinches banks, and thus affects lending adversely. This bill, if not rescinded, could be just as damaging to the economy as Obamacare, if not more. More shoes will drop soon, as the committee decides how much to regulate over-draft fees, and as other bank regulations in the bill are rolled out.
We have a WF debit card in Nevada. Once that $3 “fee” goes into effect, we’ll just stop off and withdraw the cash.
Maybe there’s enough of the younger ones who will put up with this crap to compensate - it’s just that we won’t be a part of it.
i think this is great news. screw the banks and their cards. A cash society is much more privacy friendly
I ALWAYS use my card. It's fast. People who use cash, fumble through their wallet for the right denomination or a penny so they don't have to get four pennies back, wait for the cashier to carefully count back their change, etc....and hold up the line at the grocery stores or any market line piss me off.
Don't even get me started on people who are still writing out checks in 2011.
I currently have WF.
If they do this, I will be in a credit union the next day. Only stay with them now because they hold my mortage.
Cash attracts a lot of attention also.
Try making a large purchase with it.