Remember how Bank of America said that they were going to charge their customers $5/month for using their debit cards? And everyone hated the huge company even more? Well, now other banks are deciding to learn from BoA's mistake and deciding against charging customers debit card usage fees.
The Wall Street Journal reports, "Following eight months of consumer testing, J.P. Morgan Chase & Co. has decided that it won't charge customers who use their debit cards to make purchases, according to a person familiar with the bank's plans. The New York bank's Chase retail unit is one of the largest U.S. consumer banks, with 26.5 million checking accounts and 5,300 branches." While Chase, U.S. Bancorp, Citigroup Inc., PNC Financial Services Group Inc., KeyCorp aren't charging the fees, they are denying it's because of BoA. KeyCorp executive David Bowen said, "We looked at all options and quickly decided it didn't fit with our overall strategy." An overall strategy of humiliation from politicians and anger from customers?
The Dodd-Frank law reduced the amount that banks can charge merchants for debit card purchases. BoA CEO Brian Moynihan recently said, "I have an inherent duty as a CEO of a publicly owned company to get a return for my shareholders" and therefore the company has a "right to make a profit." Now BoA is looking at ways to "soften" the fee.