Bank of America’s Response to Durbin
As expected another big bank announced new fees associated with debit card usage. Bank of America recently announced a $5 per month fee for all customers who use their debit card fee—with exception to ATM usage and certain special accounts. This new fee is similar to Wells Fargo’s Response to the Durbin Amendment, which was announced in August.
As discussed in the FMSI white paper: The Impact of Federal Regulations on the Financial Services Industry, banks are taking a huge hit to their revenue stream from the Durbin Amendment. Charging additional fees directly to the consumer was a concern opponents of the amendment had. Time will tell how consumers react to this $5 per month charge.
How will community banks and credit unions respond—who are exempt from the Durbin Amendment (those who have assets less than $10 billion)? Will we see a significant migration in the financial services industry or will consumers simply absorb these new fees?
