Earlier this year, Congress passed the Durbin Amendment which regulates and restricts the charges related to debit card transactions and the effects of the Durbin Amendment are starting to be felt by banks.
The new legislation places caps on income that financial institutions can receive from their card network each time a consumer uses their debit card. Bank of America and Citibank have already announced they will begin charging consumers fees to make up for the lost income. In the coming months, it is likely consumers will hear about more banks raising fees across many categories as they seek to recoup profits for their shareholders. Carefully watch the following areas for increased fees and requirements in coming months:
Free Checking: Fee free checking will likely be altered by many banks. Banks may move to have minimum balance requirements or monthly fees for consumers to maintain a checking account. Conversely, many credit unions will continue to offer some form of free checking to its members.
Debit Cards: According to a recent CNN article, Bank of America is already implementing a fee for debit cards. While other banks are looking at similar strategies, the reality is, banks will attempt to make up for lost debit card interchange by imposing monthly fees. We’re proud to say that many credit unions, including Community Choice Credit Union, are committed to fee free debit cards.
ATM Fees: Expect banks to increase fees on both ATM transactions and purchases made on out-of-network ATMs. Many credit unions are part of the CO-OP Network. This means that if you’re a member at a credit union on the CO-OP Network, you have access to over 28,000 surcharge free ATMs.
Minimum Balances: Banks continue to escalate their requirements on minimum balances for checking accounts. Credit unions understand that members will have fluctuating balances and you’ll find that many credit unions require either no minimum balance or extremely low minimum balances.
Learn more about moving your money to a credit union by visiting:
Equal Housing Lender. 