BofA to charge customers for debit card use | FT Alphaville

BofA to charge customers for debit card use

Bank of America, the largest US bank by deposits, is to charge its customers for using debit cards, as the beleaguered bank tries to claw back revenue in the face of new rules contained in the Dodd-Frank act. BofA said its debit card users would pay $5 a month from early next year when they used the cards to buy goods, though certain “premium” clients will be exempt from the charge, the FT reports. The so-called Durbin amendment to Dodd-Frank, which capped debit card fees paid by retailers, was introduced at the insistence of Dick Durbin, the powerful Illinois senator, in what was widely seen at the time as an attention-grabbing move to help in his ambition to succeed Harry Reid as the Democratic leader in the Senate. The rule comes into effect on Saturday. The NYT says Wells Fargo and Chase are testing $3 monthly debit card fees while smaller banks are also charging as much as $5 a month.