Photo: Vivian Giang
Chase has decided against imposing a monthly debit card fee on its customers, an unnamed source tells the Journal, the Times and Associated Press. (The source/s refused to be named as the bank has not officially announced the decision.)The banking arm of JP Morgan & Chase launched a pilot program in Wisconsin and Georgia in February when it was considering a $3 monthly fee. The program will end in November, but the source says the bank made its decision earlier because the policy has made its checking accounts unpopular.
The source denied the decision has anything to do with Bank of America, which endured a severe public backlash after announcing it would charge a $5-a-month debit card fee. BofA has since revoked that policy.
Wells Fargo began a pilot program similar to Chase’s in five different states that charged a $3 flat fee for using a debit card for purchases. It announced Friday that it’s cancelling its testing program as well.
Some banks already have fees in place like SunTrust Banks, which charges $5 a month, and Region’s Financial Corp., which charges $4 a month.
Big banks have been saying they need to charge these debit card fees to compensate for lost revenue from new federal banking regulations. The new rules put a limit on how much banks can charge merchants for swiping debit cards, and the banks have been trying to pass the cost off to customers.
One standalone is Citigroup, which never threatened to charge basic debit card fees, but did change the requirements for its higher-level checking accounts that makes it easier to incur a $20-a-month service fee.
Other banks not charging service fees include Huntington Bank, USAA, Ally Bank, TD Bank and CDC Federal Credit Union in Atlanta.