October 28, 2011
After Bank of America got pummeled in the court of public opinion for its plans to assess a $5 monthly debit charge, many major FIs are backing away from taking a similar strategy.
Like Citi, J.P. Morgan Chase has now announced it will not dock customers who make purchases using their debit, the Wall Street Journal states, citing sources close to the matter. The bank’s Chase retail division is one of the largest consumer banks in the country, according to the newspaper, overseeing 26.5 million checking accounts and 5,300 branches.
In addition to Citi and J.P. Morgan, U.S. Bancorp, PNC Financial Services Group Inc. and KeyCorp have also announced they do not plan to charge for debit usage. (None of the FIs publically stated how the reaction to BoA’s new charge influenced their own planning.)
“We looked at all options and quickly decided it didn’t fit with our overall strategy,” said David Bowen of KeyCorp, which is one of the 20 largest U.S. banks.
Wells Fargo & Co. is trying out a $3 monthly debit-card fee in five states.
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“We regularly review our pricing and take into account the needs of our customers, industry trends, the market competition and our cost of doing business,” said the company in a statement.
