August 29, 2011
Starting in October, Wells Fargo will be charging $3 each month to shoppers who opt to purchase via debit cards. It’s part of the bank’s overall effort to make up for lost revenue under the new interchange caps. JPMorgan Chase, Regions Bank and SunTrust Bank have also added fees for debit card usage, according to the Los Angeles Times.
Credit Unions Online recently published roundup of reaction from credit union executives. Here are a handful of their comments:
Mike Corwin, AVP/PR & Business Development at OSU Federal Credit Union ($695 million, Corvallis, OR) says, “We assume they (Wells Fargo) are responding to their business needs. Instead, we prefer to keep the focus on our membership and how we can best provide them unsurpassed service. Our goal is to maintain the free checking/debit accounts our member owners have come to expect as long as we are able to recoup our cost to facilitate such a staple and valued program.”
Greg Barnes, SVP/Marketing at Nevada Federal Credit Union ($678 million, Las Vegas) says, “The new federal mandated pricing structure for the larger banks won’t even cover their cost of offering the product, much less cover fraud losses. It’s another example of how federal regulation designed to protect the consumer ends up doing the exact opposite.”
Dave Willis, SVP/Debit Card & Fund Services at Navy Federal Credit Union ($46 billion, Vienna VA) says, This (debit card fees) is not a surprise and although we’ve been publicly vocal about our feelings, we knew this would happen. However, we are looking at other options to imposing a debit card fees. As a credit union, our goal is to deliver low rates on loans and high rates on deposits in addition to free checking and no fees on debit cards.”
Click here to read the full article and more commentary from credit union executives.