Credit unions, community banks and any other financial institution that does not charge consumers to use a debit card stand to benefit after Bank of America announced it would begin to charge customers $5 per month to use their debit cards to make purchases at retailers.
Media outlets are reporting that the fee will not be levied at ATMs and that even one use of the debit card at a point of sale terminal would be enough to trigger the fee.
On some accounts which already carry fees for not having minimum monthly balances of at least $1,500, the addition of the debit card fee will increase monthly fees on those accounts to between $17 and $20.
Consumers have been quoted in media stories as saying they would either change financial institutions or change the way they pay for things, including going back to using cash and checks.
Bank of America and others are raising fees and eliminating debit rewards program to make up for lost income from the interchange cap imposed by the Durbin amendment.