August 22, 2011
Wells Fargo customers just can’t catch a break! After announcing last week a new $3 monthly fee for purchases made via debit, CNNMoney reports that Wells Fargo has now decided to terminate its debit rewards program for existing cardholders.
“We made this decision due to new regulations that limit the amount of money merchants pay financial institutions for processing debit card transactions,” a Wells Fargo spokeswoman said. “The new cap doesn’t cover all the costs associated with offering debit cards, including processing, administration and fraud.”
Current customers will no longer earn points for debit card transaction starting in October.
“Wells Fargo (WFC, Fortune 500) customers currently receive a point for every $4 they spend using their debit card, and up to 16 points for every $1 spent online at select retailers,” explained CNNMoney. “In exchange, the bank charges a $12 annual fee. Once the rewards program ends, customers will no longer be charged the annual fee, and they will still have access to points they have earned.”
The company had already discontinued debit rewards for new enrollees earlier this year. CNNMoney states that Wells Fargo’s decision to end debit rewards is a revenue-saving maneuver in light of the Federal Reserve’s new debit interchange caps. Click here to read the full article.
USAA announced last month that it would be ending debit rewards in order to preserve free checking services for customers. Chase canceled its own debit rewards program back in March but then reversed the ruling a month later.