Big Banks Blink on New Card Fees

[ProSense]

Big Banks Blink on New Card Fees

By ROBIN SIDEL

A month after Bank of America got pummeled by consumers and politicians for introducing plans for new debit-card fees, most other big U.S. banks are steering clear of imposing similar charges.

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.

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The debit-card fees have sparked an outcry among politicians—including members of Congress and President Obama—as well as customers, who have threatened to close their bank accounts and move to other institutions.

Community banks and credit unions are tapping into that fury by encouraging consumers to move to small institutions that don't charge such fees. Bethpage Federal Credit Union in New York, for example, said this week it signed up 1,500 customers—twice its normal rate—since Bank of America's plans became public.

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[dixiegrrrrl]

1. See? We DO have some influence.

"We are many, they are few".

[totodeinhere]

9. They will just find another way to screw us. n/t

[Pacifist Patriot]

2. Saw a great advert for Ally Bank this morning.

Now I know nothing about this bank whatsoever, but the advertisement was brilliant. Person asks random strangers to watch a huge amount of cash for a few minutes while he runs off to do something. The voice over then announces not a single stranger took so much as a penny from the cash they were asked to watch. Then asks how much your bank takes from you in fees to watch over your money.

I haven't found the ad on YouTube or I'd post a link. I'm perfectly happy with my Credit Union so I'm not going to be scouting for an Ally Bank branch any time soon, but I thought the ad was quite clever.

[rbixby]

4. I thought it was really clever too

There's something to be said for a bank like that. Like you though, I'm more than happy with my credit union. They also have this clever advertising campaign (and are basically open to everyone now, if you don't meet the 'member requirements', then you just need to donate $25 to their foundation) that's on buses around the city. It says things like "Your bank is a naughty, naughty bank. Come check out Affinity Plus". And with online banking, I only ever really need to go into a branch maybe once or twice a year.

Here's their website, for anyone in Minnesota to check out. I love this place!

http://www.ditchyourbank.net/

(okay, its not a direct link to the bank's website, but its good stuff about banking in general)

[safeinOhio]

3. Moved a nice chunk of change from Wells Fargo

to a CU yesterday. Not so much because of the fees. It's because the misuse of the power by one of the big 5 to screw the middle class. The CU board is made up of mostly retired school teachers and it has a 5 star rating. They don't misuse deposits for marginal bets that screw up the markets on oil and food too.

Feel free to join me.

[LiberalFighter]

5. There is no legitimate reason for them to charge fees for using the cards.

1) They charge the business that accepts the use a fee.
2) They save money by not having humans do the transactions for withdrawals.
3) They save money with their record keeping operations.
4) Their executives get paid too much.

[Pacifist Patriot]

6. Seriously!

[ieoeja]

10. Last I knew, they did not charge the business a fee if it was used as a debit card.

But my information goes back to 1998. I was on a team working on new point of sale software then and was told to have it automatically determine if it was a debit card then prompt the buyer for their code if it was because debit card processing was free.

I think the logic was that the fee makes up for some of the risk a credit card company takes that a person may not pay that debt. While a debit is guaranteed.

[quakerboy]

11. Yup.

this was a case of killing the goose that laid the golden eggs.

[ladywnch]

7. they'll just find another way to exact their fees......raise account fees

transactions fees, new fees not yet even thought of. And, odds are, those fees will be worse than the debit card fee.

Trust me, they ain't gonna just let it go...........

[Cirque du So-What]

8. If I had an account with a big bank that announced it wouldn't be imposing new fees

I would still move that account to a credit union, simply because they were flirting with the idea and will probably start charging the fees once the furor subsides.

[Robb]

12. It took about 15 seconds for my bank to seize on the thing as a marketing opportunity.

"Fees to use your money? Not with us!" etc. etc.