Bank of
America (BofA) is to hit debit cardholders with a $5 monthly fee
from early 2012.

With the Dodd-Frank
Durbin amendment capping debit card processing fees at $0.21 per
transaction, coming into force on 1 October, US banks have been
eyeing up ways to offset a forecast $6bn a year in lost
revenue.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

BofA has said it faces a
revenue hit of up to $2bn a year; Wells Fargo said it will lose
revenue of up to $1bn.

In August, Wells Fargo said
it would charge debit cardholders a fee of $3 a month from October
in a number of US states.

Atlanta-based
SunTrust Banks has also introduced a monthly fee of $4.

In addition to
trialing a monthly debit card fee of $3, Chase stopped giving
rewards points on debit card purchases from 19 July.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Chase withdrew its
loyalty scheme – with 3% cash-back its debit scheme was one of the
most generous options offered by any US lender – for new customers
in February.