Quick, check your wallet — if you happen to have a debit card issued by Bank of America, you should be prepared to pay a new $5 monthly fee starting as soon as January.
The bank says it will charge customers the $5 fee in any month in which they make a purchase with their debit card. Bank of America says they are instituting the new fee in response to regulations taking effect October 1st that will limit the amount they can charge merchants each time a customer pays for a purchase with their debit card.
Up to now, banks had been charging retailers about 44 cents per debit card transaction (which we can assume was being passed onto customers via higher prices). Now, that amount will be capped at 24 cents per transaction.
“The economics of offering debit cards have changed,” said Bank of America spokeswoman Anne Pace.
Which, when translated from bank-speak to regular English, means: “We found a creative new way to get money from our customers.”
But Bank of America is not the only one trying out new fees for debit card customers. JP Morgan Chase and Wells Fargo are testing $3 fees, according to the Mercury News.
If you have a debit card, be sure to know the fees you’re paying, no matter which bank you use. And if you’re trying to get out of debt, this news might be a good reason to start cutting back on your purchases!
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