The big news of the day is that Bank of America is going to charge a $5 monthly fee to some holders of debit cards.Apparently the charge is being levied as a response to legislation limiting debt card interchange fees under Dodd-Frank.
Naturally this is being greeted with howls of outrage: A too-big-to-fail mega bank nickle and diming their customers!
OK, I’m not a BofA customer (I bank with another TBTF megabank) but I’m happy about this trend.
I get considerable utility from my debit card, and I don’t mind paying for it. What I do mind (as a customer) is hidden fees, absurd attempts to get me to overdraft (resulting in gigantic fees), and the stultification of the payments market by large financial institutions.
Granted, this isn’t coming to an end. Hidden fees, overdrafts, etc. are still here. But it’s a good start to a trend: Charge for services of value, and make it clear.
So bring it on. Make clear fees for services that a receive, and leave it at that.
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