USAA Bank Ends Debit Card Rewards to Preserve Free Checking

A new federal law will significantly reduce the revenue banks receive from merchants when consumers pay with a debit card. USAA Bank has always returned the majority of this revenue to its members in the form of benefits, such as free checking, ATM fee refunds and debit rewards.

As a result of the law, USAA Bank will end its debit card rewards program Sept. 1. Unlike other banks responding to the new law, USAA Bank is not adding fees or eliminating the benefits that members value most, including free checking and ATM fee refunds.

Details of the Law

New Federal Reserve regulations implementing a key provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act take effect Oct. 1, 2011, and will change the amount of debit card interchange fees. These fees are paid by merchants to banks that issue debit cards in exchange for processing transactions. (continued)

Source: www.usaa.com