October 13, 2011
The Consumer Financial Protection Bureau knew about Bank of America’s impending $5 monthly debit usage charge at least two weeks in advance of the official announcement, say those close to the situation, according to Bloomberg. The CFPB did not fight BoA’s fee plan, according to the new site.
The charge, which will be implemented early next year, will only apply to customers buying items with their debit card during the course of any given month. ATM transactions will not trigger the fee. (Related: Is BoA’s 30K Job Cut Due to Dodd-Frank?)
“Bank of America is trying to cushion revenue losses it expects to incur from new caps on the fees merchants pay when a customer uses a debit card at their stores,” explains the Wall Street Journal. “In June, the Federal Reserve Board finalized rules capping such fees at 24 cents per transaction, compared with a current average of 44 cents.”
WSJ reports the new debit interchange limits, which go into effect Oct. 1, could wipe out $2 billion in annual revenue for BoA.
“This new fee allows us to continue to offer the convenience of a debit card with the full range of added features customers have come to expect,” including fraud protection and monitoring, special savings programs and other services, the bank’s memo said.
——
Related: Bank of America CEO Defends Debit Fee in New Interview [VIDEO]
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More