Wells Fargo's $3 Debit Card Charge: A Sign of More Bank Fees to Come?

By Ron Dicker Posted 10:00PM 08/16/11 Wells Fargo & Co, Banking

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A new report emerged Tuesday that Wells Fargo (WFC) will begin charging some customers $3 every month to use their debit card -- further indication that banks are putting on the squeeze as new swipe-card regulations are set to take effect.

Wells Fargo already sent letters to customers in Georgia, New Mexico, Nevada, Oregon and Washington that the fees will begin Oct. 14, according to MyBankTracker.com. That's just two weeks after Federal Reserve-mandated rules slash the amount banks can charge retailers for every debit card purchase. Regulators reduced the maximum bank take on each transaction from 44 cents to 24 cents.

A chain reaction was already in effect before Wells Fargo acted. In March, JPMorgan Chase (JPM) began assessing a $3 service fee for debit card use and $15 for checking accounts in certain regions, according to reports. Chase has also pondered the idea of capping the amount per debit-card purchase at $50 to $100, along with other major institutions such as Citigroup and Bank of America, the New York Post reported.

Not only would customers not be able to pay for items as modest as a children's bicycle with the debit card, they would likely be forced to make more individual transactions that would generate more charges.

In another strategy to offset anticipated losses from the upcoming Fed reductions, Bank of America (BAC) already raised its ATM fee to $3.

The bad news may keep coming for Wells Fargo customers. At a recent conference, Wells Fargo Chairman and CEO John Stumpf outlined other possible revenue generators, including raising minimum account balances and slapping on a fee for even the right to have a debit card, MyBankTracker wrote.

Wells Fargo estimated it would save more than $200 million in losses with the $3 debit card fee. But it might also anger a lot of account holders in the process. If the fee were to go in effect nationwide, it would hit 40 million Wells Fargo customers, the article said.

While the banks figure out to the penny how to offset the inhibited profit flow, one wonders if anyone in the industry is putting a price on customer resentment?

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Tagged: ATM fee, AtmFee, banking, debit cards, DebitCards, minimum account balance, MinimumAccountBalance, personal finance, PersonalFinance, swipe fees, SwipeFees, wells fargo 3 debit fee, wells fargo debit

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glojul

This would onloy add insult to injury -Wells Fargo is charging ridiculous fees already. I didn't ready the fee disclosure carefully after the transition from Wachovia. The actually charged me a $2.00 balance inquiry fee PLUS a $2.00 non ells Fargo ATM fee on one withdrawal! $2.00 just to view an additional screen! Looking for a new bank, maybe a credit union.

October 28 2011 at 7:53 AM Report abuse Permalink rate up rate down Reply

waitng2xhl

i work too hard to have a bank charge me for accessing my own money. If they do this, I'll pull this account out.

October 13 2011 at 11:17 PM Report abuse Permalink rate up rate down Reply

tedw248

Also check out the Akimbo Card, it helps avoid monthly debit card charges. I've been using it for a few months now and have had no troubles with it, plus they provide great customer service. It’s through the visa payment network. https://akimbocard.com/

October 12 2011 at 3:19 PM Report abuse Permalink rate up rate down Reply

Bob Smith

I was a customer at First Union when I first started banking before college, then they got bought by Wachovia which was actually a decent transition. Wachovia was a good banking experience (especially if you lived in the greater Phila. area). I banked with them for over 15 - 20 years. Wells Fargo is awlful. I would even go so far to say that I actually HATE this particular bank. And the fact that they are now implementing additional fees just to use your OWN money is an absolute slap in the face. I'm joining a credit union by the end of October and can not wait to pull all my money out of Wells Fargo.

October 10 2011 at 9:41 AM Report abuse Permalink +1 rate up rate down Reply

Charkr982

Just watched Wells Fargo T.V. ad. To help their depositors save, Wells Fargo will transfer $1 from a depositor's checking account to their savings account every time they use their debit card. But I guess three three times a month a debit card transaction will make that arrangement null and void. The ad doesn't mention that.

October 02 2011 at 10:15 PM Report abuse Permalink rate up rate down Reply

Tom

I think I'm going to accidentally break the screen of the ATM. I'm going from paperless back to paper to make them mail it to me at their cost. I'm going to make a deposit but punch it in wrong so they have to send me a correction and have a person actually do something, I'm going to tell them that the keys on the ATM are sticking so they have to send a repairman. Lots of other ideas...I figure I can cost them at least 200 bucks a month just on my own. Any other ideas? Perhaps a slip and fall in the lobby?

October 01 2011 at 5:38 PM Report abuse Permalink +3 rate up rate down Reply

xBig-Ex

This is it! its enough!

I am closing my Wells Fargo account before the new year.

We cant get a break....

October 01 2011 at 9:55 AM Report abuse Permalink +1 rate up rate down Reply

charlinetate

It a shame... Companies such as Wells Fargo layoff people and become more automated than charge you more. Guess it time to get back to old habits (start carring cash). There is one good thing about this fee, I personaly will spend less and loose weight. I won't make those little purchases like stoping a McDonalds or Taco Bell. It will help control impulse purchaseing. If I don't have enough cash on hand I will not purchase it.

I would like to think the bank is thinking about my well being but we all know they are only thinking about thier pocket. No ours and not the economy.

September 30 2011 at 7:56 AM Report abuse Permalink +1 rate up rate down Reply

Nelson

Wells Fargo Bank is going to suffer a backlash for the way they are choosing to make profits off of their loyal customers like myself. I will only use my debit/check card at their atm's and not retailers to avoid the $3.00 fee. Before I go shopping, I'll withdraw enough cash at one of their atm's and handle it that way. It's not that I can't afford the fee, it's that Wells Fargo is greedy. If they institute a fee just for having a debit/check card, which I anticipate will be their next move regarding the debit/check card, I'll turn in both of my debit/check cards for my checking accounts. I have two checking accounts with a savings account linked to each checking account at Wells Fargo. I recently tried to access and print a copy of the recent statement for each of my checking accounts and couldn't do so. They weren't available. They've got this all screwed up! They told me they have consolidated statements to reflect both savings and checking information on one statement. Dates were inaccurate, and I did not see the savings information on the new statements. They told me that the consolidation was due to a new "green" approach that the bank was taking. B.S.! They're going overboard with these new "customer-unfriendly" changes and fees and they are going to end up losing me and many other customers because of it! One bank I know of in my town offers new account holders $25.00 for each debit card from another bank that they surrender when opening a new account with that bank. Also, they don't have a minimum for their checking accounts and don't charge a monthly fee. I'll be watching Wells Fargo bank for any new "customer-unfriendly" behavior in the future and may just take my business elsewhere!

September 21 2011 at 9:49 PM Report abuse Permalink +1 rate up rate down Reply