Skip to comments.Bank of America to charge debit card use fee (Big Business™ rapes taxpayers who bailed it out)
Posted on 09/29/2011 5:36:53 PM PDT by rabscuttle385
Bank of America Corp plans to charge customers who use their debit cards to make purchases a $5 monthly fee beginning early next year, joining other banks scrambling for new sources of revenue.
U.S. banks have been looking for ways to increase revenue as regulations introduced since the financial crisis limited the use of overdraft and other fees.
(Excerpt) Read more at reuters.com ...
- go back to counter withdrawals
- move to a different bank
We’re in the process of closing out 28 year account with these vermin. Well before this stunt. We use the debit card once every few months. THey are not getting MY money for using MY money.
This has to do with new Federal taxes on financial transactions that are part of Dodd-Frank and the Oxley bills, and the fact that they can’t pass these taxes on to consumers, as well as the new overdraft rules.
I took a check issues by a BOA account holder to a local BOA branch to cash. They wanted a $5 fee to cash their own customer’s check!
Instead, I deposited it to my own account and VOWED to NEVER deal with BOA.
Bye - bye, BOA!
Credit Unions forever!
“Bailing out” of BOA asap!
Apparently, the fee is only for point of purchase swipes of the card, not ATM. So BoA customers can just go take out $xx, then head to the stores.
Merchants used to have to pay some minor fee for cards used in their stores. The Congress in its finite wisdom wrote that out in its latest laws, so the bank(s) will compensate one way or another for that income.
There is no such tax. It was proposed, never became a bill or passed.
This is all about banks having to make up revenue (read that: profits) due to the so-called credit card reforms rammed through by the Obama Administration in 2010. The changes have been taking place over the last 15 months, the remaining changes are starting to go into effect.
Among those changes to billing or "grace" periods, limitations on how credit card companies can jack up rates, elimination of certain types of transaction charges, limits on ATM fees and more.
The biggest thing to remember is this: Anytime the Government says they're here to help you (or the consumer) hang onto your wallet. These "reforms" have cost us consumers PLENTY, Obama's to thank for that - not the banks.
The fine critters in Congress just put more financial burden on the consumers. Way to go, you idiots! How dumb can they be when they didn’t realize that the banks would pass this loss of revenue on to their customers? Maybe they did know.
Wells Fargo, too wants $5 to cash their own check.
Billions in bailouts, thousands of layoffs...still screwing us.
Best way to screw the banks. They'll catch on though and up checking account fee's to make it up.
Cash is the best way to go, period. Been doing that for YEARS. If I don't have it in my pocket, I don't spend it. Removes all that "impulse" buying and really makes one think long and hard before parting with one's hard earned income.
In all fairness, quite a few of these banks paid back the TARP money, with interest.
As far as these new debit card fees, you can blame the democrats for forcing banks to lower the transaction fees they collected from the merchants. Just more of all that hope and change people voted in 3 years ago.
Just use a credit card and pay it off every month.
It is not the bank’s faults. Its the Fed that won’t charge interest rates, the entire financial sector is barely holding on.
My wife and I spoke about it earlier. Once I figure out how to change all my automatic monthly payments, we are going to our local bank.
Congress does it over and over and over again. Can’t help themselves. And never seem to quite figure out when they try to punish big bad bans or big bad corporations, the cost of that punishment ends up being paid by us.
Wells Fargo is going in the same direction - and all banks are going to follow -
AND - they will charge for checking accounts, too! WF is already charging it’s customers $5/month in some areas!
And - you want to fly overseas? If your baggage is more than allowed - it will cost you $400! You want a pillow on the plane? $10. You want extra onions on your plate at a restaurant? Expect to pay up to a dollar. And Raspberry Iced tea is now up to $3/glass in most restaurants.
Face it. We are going to be nickled and dimed at every turn from here on out - and we all know who to blame!
Yup that guy with the gun at your back forcing you to use a debit card has got to go.
there is.....become a member of a Credit Union.
Is there ANY government fee/tax/charge/whatever that ANYone pays that costs less than $60/year?
You are correct. congress and obama did this to the consumer.
You can pull you money from banks and move it to a local credit union. Also pay everything you can in cash.
Try to write a check somewhere.. IF they are willing to accept it (I won’t take a check from anyone that is not a contract client) you’ll need to pass the computer check to make sure the check is good.
I hate checks, don’t like to take them but when you have a contracted customer who pays a month in advance even if it bounces you know it before the paid for month is used up.
Sure is something we can do about it. Stop using them. I use my debit card in lieu of cash because it is convenient. If the bank starts to charge a monthly fee, it will no longer be convenient. I’ll move to a bank closer to my home, and go back to cash.
I am going back to cash.
BTW, credit cards charge shop owners a 3% charge on transactions.
Many shop owners will take 3% off of a purchase if you use cash and ask for the reduction.
They NEVER advertise that they are willing to take 3% off for cash.
That doesn't matter to them. They just don't like that good behavior (being a good banking customer) is rewarded and that bad behavior is punished with fees. "It's just not fair!" "Fairness" is important to them, but they don't believe in giving people incentives to improve, but would rather punish people who do the right thing, aka "are winners in the lottery of life."
Of course there is. I pay $52/year to the city in which I work, supposedly to help pay for emergency services.
It used to be $10/year.
When you spend cash you realize how much something really costs and you tend to not be so impulsive.
my cc charged me appx $2.50 this past month, as an interest charge rate for appx. a $300-400 balance that was carried over for the month.
Compare that versus $5 a month for using your own money via a debit card and with less much protection against fraud and theft than a CC offers.
BofA was one of the first banks to aid and abet illegal aliens, as these invaders send tens of millions of American dollars out of the country, back to Mexico.
I also have banks send me their ATM card only, no visa or mastercard logo on them. Using debit/ATM cards as CC’s is for losers.
Wells Fargo is also dropping the VISA Extras program.
They ought to change their name to El Fargoso.
IMHO, Congress wants us to change our method of paying for stuff. Why else would they pass regulations like this?
Fine. I’ll change. I’ll go to the ATM, withdraw a bunch of cash, go to the store and spend it. Everybody wins except the bank. The store wins because they won’t have to pay the debit card transaction fee. I win because I won’t have to pay the debit card monthly fee.
The bank will lose twice: First because my checking account balance won’t be as high (I’ll be carrying it in my pocket) and second because there won’t be a transaction fee from the store.
And if the bank decides to charge a flat monthly fee on my debit card? I’ll go to all cash and switch the debit card for an ATM-only card. And if the bank decides to charge a flat monthly fee on the ATM card? I’ll go back to writing checks. And if the bank decides to start charging for my checking account? There’s always the credit union. They appear to really want my business.
The bank will NOT win. I won’t let them.
Everyone should remember to thank Obama every time they swipe their card.
A little over a year ago, we were in the process of moving. I was in our new state for several months. We got a call about some suspicious activity on my ATM card. I called and concluded there was nothing suspicious, just me using the ATM 500 miles from home. I thought all was OK until, a few days later, down to my last dollar and 500 miles away, went to the ATM. Turns out the moron at BOA forgot totell me they cancelled my card due to the activity. They did reactivate it so I could get some cash but were unable to send me a new one to my new address, since I had not changed the account over. An hour on the phone and 90 minutes at the branch convinced me that BOA is totally incompetent. These boneheads actually wanted the password I used 28 years earlier when I opened the account.
On the flip side, I have a small account that I’ve had since I was an infant at a credit union. My grandfather was an early investor or something. My account number has a bunch of zero’s in front of a two digit number. I called to inquire about a car loan and they asked the account number. THe response was “Whoa, cool. How much do you need to borrow?” That’s what a bank should be. But, they are also 500 miles away.
Plus you earn membership rewards!
I won’t use a debit card for other reasons. They’ll give you an old fashioned ATM card if you ask for it, but they hide the fact and push the debit cards.
We are in the final phase of closing out all of our business with BofA.
They developed a habit of charging us for our formerly free checking account and for savings accounts too! We would go in and they would apologize and reverse the charges and then several months later they would do it again.
I grew weary of this and several other undesirable actions on their part, so I began 6-months ago to transfer all of our accounts and bill-pay info to the local credit union.
Now the process is nearly complete and BofA can pound sand.
Except that the credit union insurer appears to be reaching a FSLIC state. They've got CUs where they've had to put in conservators because they can't afford to shut them down or pay another CU to take them.