Durbin Amendment Results in Higher Consumer Fees AnywayAugust 23, 2011 | By: Sean Murray
Posted on August 18, 2011 at 12:05 AM
Remember how the Federal Reseve met the banks halfway and raised the debit interchange fee cap from 12 cents to 21 cents and 5 basis points? Well, Wells Fargo stil isn’t happy. Today they announced a $3 monthly service fee just for having a debit card. What gives?
Additional reforms limit the amount banks can charge customers for managing their checking accounts. That’s causing them to move their fees to another category.
Wells Fargo has said it plans to recover about half the revenue it loses from the new regulation, either through product changes or volume growth. Earlier this year Wells Fargo announced that it was ending its debit rewards program.
“$3 might be small enough to prevent customers from grumbling but perhaps not considering they already charge other debit card fees. “The fee would be in addition to monthly service fees ranging from $5 to $30 that Wells Fargo already charges.
Sounds like no matter which way you shake it, the banks come out on top. The fees just get moved around and the end result is always the same.
-deBanked.Last modified: September 28, 2013
Sean Murray is the founder of deBanked, an 11-year veteran of the merchant cash advance industry, a casual Lending Club and Prosper note investor, the co-founder of Daily Funder, an alternative lending speaker, consultant, writer, and enthusiast. Connect with me on LinkedIn or follow me on twitter.