Bucks Blog: Chase Bank Won’t Impose Debit Card Fee

Associated PressA protester burned a Bank of America debit card outside a Chase bank branch in Seattle earlier this month.

JPMorgan Chase has decided against adopting a monthly fee for account holders who use debit cards for purchases.

Chase, one of the country’s largest retail banks, had been testing an account that included a $3 monthly fee for debit card use. But the test, which began in February and was limited to two states, is ending next month and won’t be extended or expanded, said a person with knowledge of the bank’s plans who did not want to be named because the bank has not announced its decision. (The development was first reported by The Wall Street Journal.)

The news last month that Bank of America was planning to add a $5 monthly fee for some accountholders who use debit cards set off widespread outrage from the bank’s customers. Bank of America has said it expected to impose the fees early next year.

The person with knowledge of Chase’s plans denied that the outcry over Bank of America’s announcement was the reason it decided not to impose the fee. Instead, the person said, the checking accounts without the debit card fees proved more popular.

Some big banks, like Citigroup, have previously said they won’t adopt fees for debit card purchases.

But two other large banks, SunTrust and Regions Bank, already have added monthly fees of $5 and $4, respectively, for some accountholders who make purchases with debit cards. (The fees don’t apply for use of the cards at A.T.M.’s.) Wells Fargo is testing a $3 fee in five states.

Banks are generally charging higher fees to help make up for revenue they lost after the federal government set limits on the fees they could charge merchants for processing debit card purchases.

Smaller banks and credit unions have been trying to capitalize on the backlash against big banks by recruiting new customers.

Does the move by Chase make you feel any better about large banks?

Article source: http://feeds.nytimes.com/click.phdo?i=238a534c16ec6c6acbe5a85df651f68a