Bank of America Abandons Debit Fee as Bank Transfer Day Nears
Bank of America said Tuesday it would abandon plans to start charging customers $5 per month to use their debit card at point-of-sale terminals.
That fee was one of the main sparks that led to Bank Transfer Day this coming Saturday.
“We have listened to our customers very closely over the last few weeks and recognize their concern with our proposed debit usage fee,” said David Darnell, co-chief operating officer for Bank of America. “Our customers’ voices are most important to us. As a result, we are not currently charging the fee and will not be moving forward with any additional plans to do so.”
The fee would have kicked in if consumers used their debit cards at a POS terminal even once during a given month, but would have been waived if the customer maintained a high balance or took other steps. Using the debit card at an ATM terminal would not have triggered the fee.
Widespread consumer outrage over the fee helped fuel the growing consumer movement to move from large banks to local banks and credit unions.