The Death of Free Debit Cards and Checking Accounts?

Reader Comments
Back to blog

no wonder the economy keeps getting worse, greedy people we want more. when is more enough. in the bible the love of money is the root of evil. beware

smitty of GA 6:51AM October 22, 2011

To M Murphy of MI, I did you read the article and realize that smaller banks and credit unions are affected differently than the large nation-wide banks.
My concern is not that banks do not make a profit, it is when they use increased bank fees to cover the billion-dollar losses associated with bad bank loan practices and the securitization of worthless collateralized mortgage obligations based subprime mortgges.
I also get annoyed when they ignore the savings they still get associated with reduced processing costs of paper checks and reduced number of tellers and teller services that were obtained by use of ATM/debit cards.
The bottom line is that the check processing and teller savings are still there (but never mentioned) and the profit margin of ATM/debit cards is only 17 cents per TX vs the previous 40 cents per TX.

ThoseWhoServe of FL 12:40PM October 10, 2011

To Thosewhoserve, did you read the article? Smaller banks and credit unions will not charge the fee because they are not affected by the recent legislation. When they are affected they will pass it on to the consumer who by the way is number 1 to any business who wants to stay in business.

MMurphy of MI 8:54AM October 10, 2011

As a bank employee and a consumer with financial needs I find the term "sneaky bank fees" very degrading. Is the author assuming that because we all have busy lives we dont have time to be responsible for what come in the mail or perhaps what is explained to us when we open accounts or sign contracts? Have we become so caught up in the "hustle and bustle of daily life" that we are no longer responsible for making sure we understand what we are reading, signing, or throwing away as junk mail?

MMurphy of MI 8:48AM October 10, 2011

@ "thosewhoserve from FL: You mentioned the banks were collecting 21 cents from the merchants for debit card transactions.
Your figure is about half of what is actually charged. The banks are charging the merchants 44 cents - not 21 cents - at the present time. The 21 cents will be charged in 2012 along with the bank's "screw the customer" fee of $5.00 per month to hopefully make up the shortfall from the merchants.

Jay R. of FL 7:29PM October 09, 2011

I - for one - will NOT pay $5.00 a month ($60.00 a year) to use my BofA debit card. IF BofA CEO Brian Moynihan cannot survive on his 6 or 7 figure salary, then I'd suggest a second job at McDonald's or Wal-Mart.
I am seriously considering following my daughter and son-in-law's lead by closing my BofA accounts and going to a Credit Union.
G R E E D is what I smell; fed by their well-placed political buddies in Washington.

Jay R. of FL 7:22PM October 09, 2011

A bank has the right to collect fees for the services it provides.
Customers have the right to change accounts and do service with a bank or credit union that considers the customers as their number one priority. At some point banks will realize that no customers means no profit.
Banks are trying to increase various service charges because their profit/per ATM/debit card transaction has dropped. The transaction costs approximately 4 -5 cents per transaction and they collect twenty-one cents from the merchant. Apparently an 80% profit is not considered adequate to the banks.
It's also important that banks provided ATM/debit cards to reduce the number of tellers in each local branch and reduce the cost of processing and clearing paper checks. Of course, they never mention how much they save; just what they now spend to use the substantiall cheaper ATM/debit card transactions.
There are many people who just assume the large nationwide banks, including B of A, Wells Fargo, Citibank, etc., are increasing checking account fees to customers to cover the hundreds of billions of dollars lost by the large banks in the creation and securitization of worthless subprime mortgages rather than the reduced profits (but not losses) from ATM/debit card services.
If you do not want to cover bank losses due to mismanagement or the bad business practices and large bonuses associated with subprime mortgages, then switch to a local bank or credit union that takes its' customers as its' number one priority and will provide free checking and free debit/ATM cards.

ThoseWhoServe of FL 3:15PM October 09, 2011

The debit cards are not dead. I have one and it is free of any charges. But customers should become tough with financial institutions. Wall Street won't ditch its greed with demonstrations only; greed should also be hammered by dissatisfied customers!
I fully agree with Illinois U.S. senator Dick Durbin that BOFA customers should "close their accounts and tell BOFA "adios!" Unless BOFA customers enjoy whining as one of life's pleasures, they should stop whining and ranting and take their business elsewhere. Capitalism is like a jungle in which the business, traders and the contractors are the predators, and the consumers are the prey. The adage "The sky is the limit" [in profits] applies to any transaction. Business, contractors and traders are not in the market as philanthropists, they are in the market to strip others of their money - as Karl Marx's sidekick Friedrich Engels correctly opined!
Would I whine if the local eatery raises raises the price of hamburger from $ 3.99 to $5.99, or if the local car oil change shop raise its price from $ 39 to $ 59? NO!!! If they hunt for more green for themselves, I won't be an easy prey; I would hunt for "greener pastures" too, a.k.a. better prices for the same things! It is a fact of life everywhere.
The Greeks have a proverb that says: "If there were no idiots, how would the smart people have an easy and comfy life?" BOFA is certainly smart enough to accept a harmless whining for more $$$$$$$! But why would someone allow BOFA to dig deeper into their pockets, and then lament or whine about? Why not close their accounts, move their eggs nest to another bank, and throw an egg on BOFA's face? That would certainly be the sweet revenge of the idiots that will turn the tables upside -down! The smart person is the one who has the last laugh, and BOFA customers can have the last laugh. And it is easy! Just throw out of their pockets the BOFA parasitic worm -a.k.a. debit card- that gnaws and fatten on their green! Nikos Retsos, retired professor

Nikos Retsos of IL 10:01AM October 08, 2011

Let's face it. B of A really stands for Bank of Al Qaeda.
POLL: Do you support Bank of America's $5 fee to use your own debit card?
Vote: http://www.wepolls.com/p/3572738

zadoc of AZ 12:16PM October 07, 2011