Bank of America to charge monthly fee to debit card users

I think the thing that really annoys me about these kind of moves is that they're clearly targeting the less fortunate out there. If I want to avoid the $5 that's easy- I'll just switch to my credit card. But people who don't have enough credit to get a credit card now get punished twice.<p>I read a fascinating passage in The Big Short (an excellent book on the financial crisis by Michael Lewis) that told the story of a top banking exec boasting about the amount of money they made on "Free Checking" accounts. Far more than they made on the accounts they charged for, because the "free" accounts came with dozens of catches and fines that ended up costing the customer more.<p>What a foul way of doing business.

"The formula sets the cap at 21 cents, plus .05 percent of the transaction amount, plus another penny in certain cases, for fraud-control measures."<p>I understand that running to the government for solutions is rarely a good thing, but in this case, shouldn't "digital currency transactions" be something that the federal government maintains as a free utility to society? Isn't something like this just as important as printing currency?

Well, I'm switching (I don't have a credit card). What is a good alternative? I know everyone loves USAA, but none of my family has any relation to the military. BoA is "great" because it is <i>everywhere</i>, is there actually anything as wide spread in the (northeast) US?

I've had accounts at Bank of America for the better part of a decade, due to my employer they have been completely free. Just recently BofA sent me a letter detailing all the new monthly charges for my accounts, to the tune of an effective annual fee of $372. The irony is that I never use those accounts anymore, having switched to a vastly superior local credit union about a year and a half ago. Despite having pumped six figures in deposits through them more than once over the course of having them as a bank BofA never treated me any better than if I were some junkie or drug dealer, it was a breath of fresh air to move to a bank that didn't treat me as if I were nothing more than a cow to be milked for fees.

They are not alone. I got word from one of my banks, Regions, that they too are implementing a similar charge.<p>Bank Simple...we're ready for you now.

I fail to see why anyone selects a big bank like BofA/WellsFargo/Chase for their personal accounts, when they are known to have a plethora of fees and dubious ethics, and there are almost always better options in regional credit unions. What am I missing?

What is truly ridiculous is that banks get a 3% merchant fee for every credit or debit transaction charged to their card. So, essentially, they are charging their customers for the very privilege of making money...<p>And we wonder why the banks are failing... this is why! You don't charge your customers for the privilege of making money! I told my bank that I flat out refuse to use my debit card unless THEY PAY ME at least 1% of the merchant fee, seeing as they are getting 3%.<p>Right now, I use a Fidelity Retirement Rewards Amex card for all of my purchases. I get 2% cash back on every purchase. For those merchants that don't accept Amex I use a Fidelity Retirement Rewards Visa, which pays 1.5% cash back on every purchase. I encourage everyone I know to do the same.<p>The reality is that credit/debit card companies make a ridiculous amount of money in merchant fees (up to 3%). DEMAND that they share that profit with you.

Obi Wan Kenobi thought Mos Eisley was a wretched hive of scum and villainy, but he obviously never visited a commercial bank.

BankSimple is rejoicing right now.<p>I have a mortgage and 3 separate accounts with BoA, but they still treat me like a 2nd class customer. This could push me over the edge.

fun fact: In Germany it's exactly the other way round at least for 99% of the banks. You will get a free debit card at every bank but you have to put down a considerable amount of money as prepayment for a credit card additionally to the yearly fees. If you want a Deutsche Bank credit card they will lock 1000 EUR before they issue it to you and you will pay around 60-100 EUR yearly.

Just read in the article that the fed lowered maximum interchange fees. Has this translated to lower fees from payment processors for anyone?

Maybe it's because I don't buy much stuff, but I never understood the point of using credit for small purchases like getting a cup of coffee. I don't understand why people would use cash for that either (unless the coffee shop only takes cash/ charges more for debit). The same goes for checks.<p>Could someone explain it to me?

Don't they already do this? If I don't have at least $1500 in my account each month I get charged. So I have this account I never use anymore save for some tiny charges, that I don't want to cancel due to credit score that has to have that much money in it at all times.

I think BOFA and other major banks are hand feeding people to credit unions in droves. I went today and set up my account at RBFCU and I can't wait to get far away from BOFA. Both my parents and I were with them for 20+ years.

Goodbye worst company in the US. Hello Credit Union!

Time for the great BofA exodus of 2012...

Its anyway the banks fu<i></i><i></i>g the customer. Either directly or indirectly using merchants.

No one seems to be adding: in a desperate attempt to avoid bankruptcy

Queue Bank Simple Invites.... now!

Banking has now officially become synonymous with desperation and lack of creativity. What was once saved for accountants in the backroom has splurged into the face of consumers. Once the "idea well" of ingenious ways to earn an extra-buck or two dries out big banks look to corporate tax-breaks. But what happens when supplementary hidden fees and costs just don't cut it? Apparently, this. Interestingly enough, BOA announced these plans with the concurrent release of "_% cash back on all debit card purchases"...coincidence?

Good thing we bailed these guys out...