One-Third Of U.S. Customers Say Debit Card Fees Would Push Them To Switch Banks: Survey

For many, debit card fees could be enough to push customers to go through the hassle of switching banks.

About one-third of consumers say they'd leave their bank if it put debit card fees in place, according to a survey by the Research Intelligence Group, Bloomberg reports. More than 40 percent of respondents say they would use cash or credit cards instead of debit cards in response to the fees.

The findings come as big banks face criticism for implementing fees on once-free checking account surveys including debit cards. Bank of America announced last month that it would charge customers $5 per month starting in 2012 to use their debit card for purchases. After the announcement angry consumers took to Twitter with some urging Bank of America customers to switch banks.

Two Bank of America customers in Santa Cruz, California tried to do just last Sunday and were almost arrested. The two women, who are affiliated with Occupy Santa Cruz, walked into a Bank of America branch and attempted to close their accounts. In response, the bank’s manager threatened to lock the doors and call the police.

In New York, about two dozen protesters were arrested after they entered a Citibank branch Saturday and refused to leave.

Wells Fargo -- another bank testing a debit card fee -- is hoping that by charging a smaller debit fee customers will remain with the bank. CEO John Stumpf told analysts on an earnings call earlier this week that the bank would only try to recoup some of the revenue lost through new regulations by upping debit card fees for customers, Consumer Affairs reports.

Bank of America CEO Brian Moynihan has said that the new debit card fees are necessary for banks to offset revenue that will be lost through the implementation of financial reform regulations in the Dodd-Frank Act, including a cap on the amount banks can charge merchants per debit card swipe. The bank reported a $6.2 billion profit in its third quarter Tuesday.

Still, the bank may not be able to remain so profitable once the fees are put in place if customers do indeed decide to switch banks. The nation's largest credit union experienced a volume of new account openings that was more than 20 percent higher than normal the weekend after Bank of America announced the fees.

Comments

[saralynnmcguire]

12:57 PM on 11/01/2011

I was planning to close my account with BOA! I have been with BOA over 5 years BUT if they were going to charge me to have access to my own money...? Sorry-NO WAY!!! When will these banks stop taking advantage of their customers? This country is pure CUT THROAT....very sad!!! Please tell me when will these big banks stop using their customers as money makers? Can someone please please help whats left of the middle class? We need help...we ALL need help!

[99er2049er]

10:53 PM on 10/20/2011

As someone who is seriously considering moving my money to a credit union. Exactly how does a credit union work compared to a bank such as chase or BofA? How do you pick a good credit union, how does the banking process work, e.g. setting up your account, getting an ATM, debit card, etc.

Any details will probably be very helpful to many of us on this board who are sick and tired of dealing with major banks that screw us.

[Mahi vce]

09:52 AM on 10/21/2011

Hopefully you will be able to find that information here
http://moveyourmoneyproject.org/

[MB1East]

09:18 PM on 10/20/2011

I plan to drop BoA this month and switch to a local bank or credit union. Still researching which one to switch to. For everyone on here complaining about how difficult it is, I suggest you suck it up and take the plunge. This isn't like packing up and moving to a new home. Carve out the few hours it will take, and just do the right thing.

[Mahi vce]

09:53 AM on 10/21/2011

Its not at all difficult ... Just few hours work ...
http://moveyourmoneyproject.org/

[TruthBSaid]

08:24 PM on 10/20/2011

I hope people don't fall for Wells Fargo's "lower" fees scheme. Lower fees have a way of slowly rising and they surely will.

[99er2049er]

10:55 PM on 10/20/2011

When I was filing bankruptcy, I was on a major bankruptcy message board where many people who were with Wells Fargo were complaining because Wells Fargo would automatically freeze their accounts when they filed, basically making their lives an even greater hell. Just something to think about when you are down and out.

[Thumbody]

05:18 PM on 10/20/2011

Then do it, credit unions are your friends.

[99er2049er]

10:55 PM on 10/20/2011

More info about how credit unions work and exactly what is involved with setting up a credit union account. Many people don't understand exactly how a credit union works.

[ADuckWalksIntoABar]

05:07 PM on 10/20/2011

I left BofA over a year ago and moved my money to a local community bank. My new bank actually makes local small business loans.

No regrets. It took a total of about 30 minutes for checking and savings. And most of that was at BofA, trying to get them to give me my money.

[RedDog79]

04:45 PM on 10/20/2011

don't just consider switching - do it.
there is no reason why anyone should dislike the bank they use - there are plenty of community banks with great customer service just waiting to offer you prime banking products - without all the distrust.

[99er2049er]

10:58 PM on 10/20/2011

I am at the point where I have a second bank account ready to move my money from BofA to Chase, however, I don't trust Chase farther than I can throw a 1,000 pound weight. So I am interested in setting up a local bank account or credit union.

Please post up any info you have about how to find a good local bank or credit union. I highly recommend everyone on this board set up a second bank account immediately so when you decide to leave your bank, you can do it very quickly and easily.

[Mahi vce]

09:55 AM on 10/21/2011

See if this helps
http://moveyourmoneyproject.org/

[golfnut49]

04:24 PM on 10/20/2011

Here is a message to all Credit Unions......make is seamless and easy for people to move their direct deposits to your CU and they will come in by the hundreds or thousands.

I have older friends who say they would switch in a minute, but because of the hassle of their direct deposits they have not moved......pls. get working on this all you Credit Unions out there.

[golfnut49]

04:20 PM on 10/20/2011

I don't do business with banks. This past week I learned that ING had been bought out by Capitol One for $9 billion.......I removed all my money from ING. Capitol One is now the 5th largest bank in the US.

If more people took their money out of banks.......banks would get the message that they can't screw people and get away with it.........let's all do it.

[InisLass]

03:33 PM on 10/20/2011

I would guess we, the public, would have more "awww, poor things" for these outfits IF they had not been bailed out by our tax dollars AND they hadn't participated in such nastiness to homeowners, which is exactly why I moved accounts out of there...and told them so. The fact that they have paid megabuck bonuses to higher up execs and then turn around and come up with this nonsense shows how dumb they must think the public is. They probably would have done this regardless of the new "rules" re vendors paying less so that just doesn't cut it either. They've drekked on people one too many times and should suffer the consequences.

[KaAp]

03:03 PM on 10/20/2011

Take your money out of these criminal enterprises and put them in your local credit unions ...

[surfandshop]

02:15 PM on 10/20/2011

Do you realize that the state of California has contracted with the Bank of America to disburse unemployemnt payments? Dumb and dumber teaming up.

[surfandshop]

02:13 PM on 10/20/2011

Everyone should support their local credit union. These do not have the Bank agenda.


.""The nation's largest credit union experienced a volume of new account openings that was more than 20 percent higher than normal the weekend after Bank of America announced the fees. ""

[w12owens49]

01:42 PM on 10/20/2011

Word police didn't like my comment again. Tell the truth here and your comment will never see the light of day.

[rolor]

01:08 PM on 10/20/2011

Those who merely consider switching after the fees are implemented is exactly what banks are counting on. There always a risk in every business decision and often a small loss when increasing rates which have already been considered when deciding what that rate increase would be. If people actually switched before that decision was implemented, then banks would learn that such decisions result in losses they hadn't considered. The fact that so many people still have their money in such institutions as BoA is a testament to the game they've been playing with the public that so many are willing to let them win.