Banks like Bank of America and Regions are going to start charging fees for the use of Debit Cards. Recently a new law passed, regulating what banks can charge retailers for allowing the use of Debit Cards. As a result, the bank revenue from this is dropping by 50%.
So instead of this law making things better, it makes it worse for those of us that are banking with these banks, because now we have to pay to make up the difference (don’t you just love new laws that are supposed to help consumers??). Those who use Debit Cards will now have to pay a $5 a month fee to do so. This fee will be taken out of your account even if you only use your Debit Card one time. Check with your local bank, to see if you will need to start paying for the use of your Debit Card.
Here is how you can avoid these new Debit Card Fees:
1. Change banks and go with a smaller bank (the smaller banks are not affected by the new regulation). Most of these smaller banks are not charging a fee for use of your debit card.
2. Every time you use your Debit Card, run it as Credit instead of Debit. The new laws do not apply to Credit Card companies, so running your Debit Card as Credit means your bank avoids the new regulation, and won’t charge you for the use of your Debit Card. This does mean that you will have to show your ID with your Debit Card, and sign a receipt instead of just putting in a pin number. The money still comes out of your bank account, the same that it would if you ran your card as Debit. Note: This is what I learned while listening to NPR last week. Check with your bank to make sure it is correct.
My bank is going to start charging for the use of Debit Cards, and they are also going to start charging for me to have an account with them. Guess who’s going to be switching banks? That’s right, me! Is your bank going to be charging you for the use of your Debit Card? You can leave a comment by clicking here.
Photo courtesy of FrannyWanny.