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Wells fargo cancels debit card fee
Old 10-30-2011, 06:46 AM   #1
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Wells fargo cancels debit card fee

Another bank cancels its debit fee. http://www.bloomberg.com/news/2011-1...ers-react.html
Quote:
Wells Fargo & Co. (WFC), the fourth- largest U.S. bank by assets, canceled plans to charge a $3 monthly fee for using its debit cards after customers in a five- state pilot program opposed the charge.
I have mixed feelings about this. Banking services cost money, and when the bank does not charge me it does charge others, probably people with less financial literacy.
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Old 10-30-2011, 09:08 AM   #2
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If you have a checking account with a bank, then aren't they already getting to borrow your money interest-free?

Do they really need to charge a fee too?
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Old 10-30-2011, 09:19 AM   #3
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Originally Posted by makincaid View Post
If you have a checking account with a bank, then aren't they already getting to borrow your money interest-free?

Do they really need to charge a fee too?
Yes but the value of that interest-free borrowing isn't very high these days. Banks used to lend at say 8% on a car loan. Now they lend at 4%. The value they get from your 0% deposit just dropped in half. They still have to give you the same banking service as before. A fee makes up some of the difference.
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Old 10-30-2011, 09:55 AM   #4
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Originally Posted by thefinancebuff View Post
Yes but the value of that interest-free borrowing isn't very high these days. Banks used to lend at say 8% on a car loan. Now they lend at 4%. The value they get from your 0% deposit just dropped in half. They still have to give you the same banking service as before. A fee makes up some of the difference.
It's all relative, they make less but so do we. Should we make less on our money and bank stays the same?
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Old 10-30-2011, 10:07 AM   #5
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Originally Posted by 73ss454 View Post
It's all relative, they make less but so do we. Should we make less on our money and bank stays the same?
The previous poster was talking about checking accounts, which usually earn 0% interest. You used to earn 0% and you still earn 0% on money in a checking account. How do you make less? If you are talking about savings accounts and CDs, banks are not charging fees on those accounts. Savings accounts and CDs also don't require as much service as checking accounts do.
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Old 10-30-2011, 10:27 AM   #6
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Originally Posted by thefinancebuff View Post
The previous poster was talking about checking accounts, which usually earn 0% interest. You used to earn 0% and you still earn 0% on money in a checking account. How do you make less? If you are talking about savings accounts and CDs, banks are not charging fees on those accounts. Savings accounts and CDs also don't require as much service as checking accounts do.

Up until a few years ago I always received interest on my checking although I admit it wasn't much. I have 2 checking accounts and my bank charges $13 a month if I don't keep $1500 in each. Then they decided to charge $4 a month for my debit card use. I canceled my debit card but took a credit card from them. Leaving a balance of $1500 is as far as I'll go. If they play any more games I'm gone. Funny that they want to charge me to use my own money on a debit card. Don't they make enough money on the kick backs from the vendors I use?

As I said, if I make less they can make less also.
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Old 10-30-2011, 10:44 AM   #7
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Originally Posted by 73ss454 View Post
Up until a few years ago I always received interest on my checking although I admit it wasn't much. I have 2 checking accounts and my bank charges $13 a month if I don't keep $1500 in each. Then they decided to charge $4 a month for my debit card use. I canceled my debit card but took a credit card from them. Leaving a balance of $1500 is as far as I'll go. If they play any more games I'm gone. Funny that they want to charge me to use my own money on a debit card. Don't they make enough money on the kick backs from the vendors I use?

As I said, if I make less they can make less also.
I've got no fee checking with no minimum balance and with free checks too as a feature offered to "seniors" by our local bank. Seems too good to be true, but I've had it several years now. Look around.

We have 2 no fee credit cards and no debit card.

Good deal on canceling your debit card. They really serve no purpose other than the banks make more money on them than credit cards (that are always paid off in full monthly).
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Old 10-30-2011, 12:55 PM   #8
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Another bank cancels its debit fee. http://www.bloomberg.com/news/2011-10-29/wells-fargo-cancels-pilot-program-of-3-debit-card-fee-as-customers-react.html
I have mixed feelings about this. Banking services cost money, and when the bank does not charge me it does charge others, probably people with less financial literacy.
I haven't seen a debit card fee since the last century when I started doing business with my present bank, which was a large, local, Louisiana bank at that time. There were still no debit card fees after my bank was bought out by CapitalOne Bank a few year back. F.'s bank doesn't charge a debit card fee either. Never has. These two banks have the lions share of customers of all financial capabilities in my area and have for many years. I don't think they charge debit card fees to anybody.

I don't feel like debit card fees are a penance that I must pay.

I also don't suppose that CapitalOne's bottom line is suffering all that much for lack of these fees.
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Old 10-30-2011, 01:18 PM   #9
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I'm a little confused by the debit card fees/no-fees and by which banks. Not that it matters to me, because I've already made up my mind that I will gladly pay the $5 fee to BOA if they do in fact levy that charge. I've been with them since they were Nations Bank and Barnnet before that. Never had a problem with that bank and they never charged me a fee for anything. The online banking is worth the $5 fee if they decide to charge one for the debit card.

The reason I'm a little confused is that I've not heard one word from the bank. No letter, no email, no nothing. Is this all speculation? Has anyone been officially notified by their bank that this would happen? I know, I've read all kind of things in the paper and heard various reports on TV but no notification by the bank.
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Old 10-30-2011, 07:24 PM   #10
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I haven't used a bank in 10 years. I've been using credit unions. The fees at most credit unions are less than banks and they usually pay you higher interest too.
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Old 10-30-2011, 07:41 PM   #11
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Originally Posted by JOHNNIE36 View Post
The reason I'm a little confused is that I've not heard one word from the bank. No letter, no email, no nothing. Is this all speculation? Has anyone been officially notified by their bank that this would happen? I know, I've read all kind of things in the paper and heard various reports on TV but no notification by the bank.
They only said they were planning to charge a fee. It now looks like they are re-thinking that decision

http://www.nytimes.com/2011/10/29/yo...-card-fee.html

Quote:
After setting off a firestorm of criticism from consumers, Capitol Hill and the White House, Bank of America is rethinking elements of its plan to charge customers $5 a month to use their debit cards.
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Old 10-30-2011, 07:42 PM   #12
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I haven't used a bank in 10 years. I've been using credit unions. The fees at most credit unions are less than banks and they usually pay you higher interest too.
+1

Love my credit union
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Old 10-31-2011, 07:34 AM   #13
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The problem with banks is that they have tried to covert existing services to [larger]sources of revenue... fee revenue. There is not additional value to the customer. Plus, they have been reducing the service they offer to customer (picking away at it to reduce costs).


Banks have probably reached a ceiling for profit margin potential with the basic checking account (including ATM and debit card fees)... all they will do is alienate customers now.

People are tired of having fees added.

IMO - The basic retail bank has plateaued in terms of growth for that business unless they come up with completely new products or services. Since deregulation, some are broadening their services into other financial service areas. But the person running the retail bank is under pressure to achieve certain ROI and ROE. I think that low risk approach [exploit the existing customer base] to increasing revenue may be over.


If they want to grow revenue, they need to look into creating new service offerings that provide additional value.
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Old 11-01-2011, 02:46 PM   #14
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I walked into my bank today and one of the guys I'm friendly with there told me that they canceled the Debit Card Fee as of today. He said that the bank had so many people cancel their checking accounts that they had no choice. Now the powers to be want him to call all the people who canceled and try to get them back.

I jumped through a bunch of hoops to beat the fees by opening a credit card and move some other things around all for nothing.

Bean counters, idiots! See what the power of the people can do, I hope Washington is watching and listening.
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Old 11-01-2011, 03:54 PM   #15
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Originally Posted by thefinancebuff View Post
Yes but the value of that interest-free borrowing isn't very high these days. Banks used to lend at say 8% on a car loan. Now they lend at 4%. The value they get from your 0% deposit just dropped in half. They still have to give you the same banking service as before. A fee makes up some of the difference.
How about those 18% credit cards? The banks are experiencing excellent spreads. I don't think we need shed any tears for them.

I've been a B of A customer for 40 years, but this fall AMF!

Ha
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Old 11-01-2011, 04:26 PM   #16
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I walked into my bank today and one of the guys I'm friendly with there told me that they canceled the Debit Card Fee as of today. He said that the bank had so many people cancel their checking accounts that they had no choice. Now the powers to be want him to call all the people who canceled and try to get them back.

I jumped through a bunch of hoops to beat the fees by opening a credit card and move some other things around all for nothing.

Bean counters, idiots! See what the power of the people can do, I hope Washington is watching and listening.

Don't blame the bean counters for upper management's stupid decisions...
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Old 11-01-2011, 04:48 PM   #17
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Do we thank the "Occupy" folks for this about face?
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Old 11-01-2011, 04:51 PM   #18
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Let's, uh, try to limit our political comments to the politics forum...
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Old 11-01-2011, 06:50 PM   #19
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Don't blame the bean counters for upper management's stupid decisions...
Where do you think they got the information from to make the decision?
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Old 11-01-2011, 06:51 PM   #20
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Do we thank the "Occupy" folks for this about face?
Why, do you think any of them have Debit Cards?
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