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[Phoenix]

NEW YORK (CNNMoney) -- Yet another of the nation's top banks is flirting with the idea of charging a monthly fee to customers who use debit cards.
Wells Fargo (WFC, Fortune 500) said Tuesday it will start charging a $3 monthly fee for debit card usage to customers in Georgia, New Mexico, Nevada and Oregon beginning Oct. 14.

"We regularly review our pricing and take into account the needs of our customers, industry trends, the market competition, and our cost of doing business," a Wells Fargo spokeswoman said. Customers who don't use their card during the month won't be charged the fee and the fee will be waived for select accounts, she added.
At the end of last year, JPMorgan Chase (JPM, Fortune 500) announced a similar test, in which it charged customers in northern Wisconsin a $3 fee for using their debit cards. The tests are still underway, a Chase spokesman said Tuesday.

Earlier this summer, the Federal Reserve implemented a cap on the fees banks can charge retailers every time customers swipe their debit cards. While banks used to be able to charge an average fee of 44 cents, now they can only charge a maximum fee of 21 cents.
Before the new rules went into effect, financial institutions lobbied hard for the Federal Reserve to delay its decision -- saying a cap on these so-called "swipe fees" would cost them billions of dollars and would only end up hurting consumers.
Even before the cap was put in place, banks started to look for ways to replace the lost revenue. Banks, including Wells Fargo, Chase and SunTrust eliminated their debit rewards programs, while other banks stopped offering free checking.

Now these new fees on debit cards are popping up. But since debit cards are rapidly replacing credit cards as the preferred payment method among consumers, these new changes aren't likely to go unnoticed.
A recent Associated Press-GfK poll of 1,001 consumers found that 61% of bank customers would stop using debit cards if a $3 fee appeared on their account. Instead, they would find a different way to pay.

I just don't get it. These guys are just mentally challenged or something.

 

[The_Inquisitor]

Community credit unions guys and gals.

 

[entremet]

L

O

L

These big banks are retarded.

 

[Deleted member 17706]

Community credit unions guys and gals.

Yep. I regret every moment I spent with big banks. I wish I had discovered my local credit union sooner.

There is nothing good about going with a big bank for the average person.

 

[Mr.Swag]

FUCK. I knew Wells Fargo was going to start fucking with us Wachovia people.

Off to a credit union I guess.

 

[victreeb3l]

wells cargot

ill stick to chase

 

[Cyan]

Don't they already do this? At least, I stopped using mine because I'd get hit with a $3 POS charge every month when I did.

Am I missing something?

 

[Lathentar]

Use a credit card?

 

[StriKeVillain]

My GF just switched to PNC last month off of Wells Fargo. Looks like it's time for me to join her.

 

[Tron 2.0]

Inevitable.

But their solution appears to be backwards. If bank fees per transaction are capped, the solution would seem to be encouraging people to use their debit cards more.

My guess is that they're counting on people being so wedded to their debit cards that they'll keep using them despite the fee.

 

[Grizzlyjin]

Usually your bank just eats the fee that goes along with maintaining a debit card and keeping their atm machines running, as a service to you since you're a customer. And sometimes they're able to work out a deal with other banks, or businesses that have ATM services to stop a fee from being charged.

Oddly enough a big source of revenue to pay for the repairs and maintenance of ATM machines is people from other banks using it and getting charged a fee. Really sucks that Wells Fargo has to go down this route.

 

[giga]

Any suggestions on what to look for in a local credit union? Or which one to choose at all?

 

[TomServo]

I'm not on the credit union bandwagon (yet), but I recently stopped using my debit card and make all my purchases on a cash-back credit card.

 

[Lkr]

if its only in those states, I might switch to Wells Fargo since Suntrust is going to start doing a $5 charge. i don't know how the hell they get away with shit like this. I'll go to a credit union if I have to even though the one by my house doesn't have anything near university

 

[Utako]

I simply use my AmEx, and link it to my checking account. It's automatically paid at the end of the month.

Is banking actually hard for some people?

 

[Weenerz]

Banks are filled with scumbags, fucking jerks.

 

[TomServo]

Is banking actually hard for some people?

I think it truly is. I've wanted to make a personal finance OT for a long time, but quoting one dumbass junior's junior status got me perma-junior'd.

 

[Koomaster]

FUCK. I knew Wells Fargo was going to start fucking with us Wachovia people.

Off to a credit union I guess.

It says it will be waived for select accounts. Hopefully that includes people transferring from Wachovia. But so far this isn't even nationwide.

 

[Suikoguy]

Amazingly stupid;

Checks cost the bank money to process (I worked at one, I know).
Debit cards make them money, ESPECIALLY when they use the credit button.

I think it will backfire, and people will start writing checks again or switch to a different bank. Which in the end will cost Wells Fargo more then they will make with the new fee.

Edit: Furthermore, the banks are apparently overestimating their brand value. There are few companies hated more then banks, there is very little "Brand Loyalty".

 

[Cubsfan23]

oh well, just cancel your card

 

[Slayven]

Community credit unions guys and gals.

Can not be said enough. The more local the better

 

[SolKane]

Wanking bankers.

 

[water_wendi]

This is why i cash my paychecks at the casino.

 

[Tron 2.0]

I simply use my AmEx, and link it to my checking account. It's automatically paid at the end of the month.

Is banking actually hard for some people?

Well, yes, of course it is.

For people with poor credit or people with low incomes, banking can be incredibly difficult.

During the boom days, banks like Washington Mutual were catering towards people in less than ideal financial situations with perks like free checking.

But now if you're low income you're probably paying a monthly fee just to have a checking account.

It's great that you are able to pay off your AmEx balance at the end of every month without giving it a single thought. If the system is working for you, there can't be anything wrong with it, right? Let them eat cake!

 

[HammerOfThor]

OPEN ALREADY, BANKSIMPLE!!!!!

 

[The_Inquisitor]

Amazingly stupid;

Checks cost the bank money to process (I worked at one, I know).
Debit cards make them money, ESPECIALLY when they use the credit button.

I think it will backfire, and people will start writing checks again or switch to a different bank. Which in the end will cost Wells Fargo more then they will make with the new fee.

Edit: Furthermore, the banks are apparently overestimating their brand value. There are few companies hated more then banks, there is very little "Brand Loyalty".

People will continue to find out about community credit unions, especially when people stop using cash for the most part like I do. I simply don't need atm's around every corner.

 

[RiccochetJ]

I would really love to hear how they justify having to charge more as a cost of doing business.

When you are a victim of debit card fraud, do they replenish your money in your account in a decent amount of time while they investigate? That's the only reason how I could see them try to justify this; it costs them money to replace your lost funds while they try to get the money back.

But yea; feels like a cash grab.

 

[Chichikov]

ill stick to chase

At the end of last year, JPMorgan Chase (JPM, Fortune 500) announced a similar test, in which it charged customers in northern Wisconsin a $3 fee for using their debit cards. The tests are still underway, a Chase spokesman said Tuesday.

I often wonder how those big banks are getting away with it.
This might be part of the answer .

 

[Suikoguy]

I would really love to hear how they justify having to charge more as a cost of doing business.

When you are a victim of debit card fraud, do they replenish your money in your account in a decent amount of time while they investigate? That's the only reason how I could see them try to justify this; it costs them money to replace your lost funds while they try to get the money back.

But yea; feels like a cash grab.

Only if the transaction is processed as a credit, and not with a pin number. With a pin-number in most cases and banks, you are fucked.

 

[ghostofsparta]

If this happens I'm switching asap. I'm already annoyed that every time I go they give me a speech about opening a savings account. Fuck off!!!

 

[Delio]

Wells Fargo is what is set up with my SSI payments. It will be annoying being charged to use my damn card ugh.

 

[rainking187]

So it's just those four states so far, right?

 

[TomServo]

Well, yes, of course it is.

For people with poor credit or people with low incomes, banking can be incredibly difficult.

During the boom days, banks like Washington Mutual were catering towards people in less than ideal financial situations with perks like free checking.

Not to get overly political, but aside from the recent changes to swipe fees another death knell for free checking is the Fed's policy of near-zero interest rates for the forseeable future.

The TBTF banks certainly don't need your deposits anymore, they can get all the low-interest cash they want from the Fed. Hell, most of them probably don't want your deposits, given the risk associated with lost / stolen cards.

 

[Drkirby]

Not my bank, not my problem. Hopefully, customers will simply move their accounts.

 

[krae_man]

This is standard in Canada.

I pay $9/month for up to 30 transactions(self or full service).

They would wave it if I had $2500 in the account at all times, but I would rather have my $2500 in something that can net me more then $9/month of return.

 

[Suikoguy]

So it's just those four states so far, right?

This is a test program. If it works out as I expect, it will likely be canceled and not expanded... however nothing surprises me with financial institutions anymore.

This is standard in Canada.

I pay $9/month for up to 30 transactions(self or full service).

Interesting, I wonder what fees merchants are charged.

 

[polyh3dron]

Come on over, and get a Chase Freedom credit card too.

 

[Nerevar]

I really don't understand people who use debit cards instead of rewards credit cards. Honestly, why do you guys do it?

 

[krae_man]

This is a test program. If it works out as I expect, it will likely be canceled and not expanded... however nothing surprises me with financial institutions anymore.



Interesting, I wonder what fees merchants are charged.

I think it's around 10-15 cents per transaction. It keeps going up. I know my employers are getting ticked off at how much merchant fees are going up. Refunding customers money costs them an arm and a leg because the banks charge the merchant fees on gross sales, not net.

I really don't understand people who use debit cards instead of rewards credit cards. Honestly, why do you guys do it?

I put as much as I can on mine.

 

[Phoenix]

Come on over, and get a Chase Freedom credit card too.

Come on over... our corporate symbol is your anus... open for business...

 

[Tron 2.0]

Not to get overly political, but aside from the recent changes to swipe fees another death knell for free checking is the Fed's policy of near-zero interest rates for the forseeable future.

The TBTF banks certainly don't need your deposits anymore, they can get all the low-interest cash they want from the Fed. Hell, most of them probably don't want your deposits, given the risk associated with lost / stolen cards.

That's a good point.

I really don't understand people who use debit cards instead of rewards credit cards. Honestly, why do you guys do it?

Probably the people with poor credit that don't qualify for rewards credit cards.

http://3.bp.blogspot.com/_LQZJ9ZLa2So/TOwntDMtPAI/AAAAAAAAA_Y/KnVCpIKvlRA/s1600/Chase-bank-sign.jpg[IMG]

Come on over, and get a Chase Freedom credit card too.[/QUOTE]Unless you live in northern Wisconsin, right?

[QUOTE=The Article In The OP That You Ignored, Apparently]At the end of last year, JPMorgan Chase (JPM, Fortune 500) announced a similar test, in which it charged customers in northern Wisconsin a $3 fee for using their debit cards. The tests are still underway, a Chase spokesman said Tuesday.[/QUOTE]

 

[Suikoguy]

I think it's around 10-15 cents per transaction. It keeps going up.

Even less then here, I don't know the actual processing costs for debit transactions here, i'm sure it varries. But if they keep charging more, then I'd suspect some banks will remove fees in an attempt to attract customers. In the US, fees have been distributed to everybody through increased prices to products and services... sounds like Canada is moving in the same route.

 

[MIMIC]

Fucking disgusting.

 

[Wazzim]

You guys in the US don't have the system that withdraws anything you pay directly from your bank account? All I see you guys talk about is cards that pretty much give small, short term loans.

 

[Tron 2.0]

You guys in the US don't have the system that withdraws anything you pay directly from your bank account? All I see you guys talk about is cards that pretty much give small, short term loans.

No, that's what a debit card is.

At some retailers you enter your bank PIN and the money is automatically debited from your account.

Other retailers don't have a place where you enter your PIN, so the transaction is conducted over one of the credit card companies networks. But the money is still taken from your checking account.

When I first came over to the US it took me a while to figure it out.

 

[Treo360]

*hugs USAA rewards card*

 

[krae_man]

Even less then here, I don't know the actual processing costs for debit transactions here, i'm sure it varries. But if they keep charging more, then I'd suspect some banks will remove fees in an attempt to attract customers. In the US, fees have been distributed to everybody through increased prices to products and services... sounds like Canada is moving in the same route.

Debit cards in Canada are done through a debit card specific network called INTERAC. I think in the US, they go through the networks credit card companies set up Plus and Cirrus. Debit card merchant fees in the states are probably a percentage like credit cards instead of a per transaction fee like up here in Canada.

 

[Vic]

This is standard in Canada.

I pay $9/month for up to 30 transactions(self or full service).

They would wave it if I had $2500 in the account at all times, but I would rather have my $2500 in something that can net me more then $9/month of return.

We're not charged to use the debit card (Interac) in Canada. Most canadian banks/caisses charges you for any debits transactions which can be waived by either subscribing to a monthly plan or by holding a minimum amount into your chequing account.

 

[Tron 2.0]

Debit cards in Canada are done through a debit card specific network called INTERAC. I think in the US, they go through the networks credit card companies set up Plus and Cirrus. Debit cards in the states probably have a percentage fee like credit cards instead of a per transaction fee like up here in Canada.

No, it's a set fee. That's part of the issue. They are capped at $0.21 per debit transaction.

I think if you don't enter a PIN it's categorized as a credit transaction, and treated like you used a credit card.

 

[krae_man]

No, it's a set fee. That's part of the issue. They are capped at $0.21 per debit transaction.

I think if you don't enter a PIN it's categorized as a credit transaction, and treated like you used a credit card.

Oh okay, wasn't sure about that.

We're not charged to use the debit card (Interac) in Canada. Most canadian banks/caisses charges you for any debits transactions which can be waived by either subscribing to a monthly plan or by holding a minimum amount into your chequing account.

Yeah, you're right. They don't charge for debit transactions, they charge for all transactions regardless of the type and you have to pay a monthly fee for a set number of transactions(or unlimited) or carry a balance of like $2000-$3000 to get the fees waved.

Some virtual banks like PC offer no transaction fees but those types of banks aren't for everyone.