If asked, it would probably be safe to say that many Americans would say they use a debit card over cash whenever making a purchase. Using cash involves the hassle of finding the right amount, cash registers, counting money and change. Versus using a debit card which simply involves one single swipe and, done! But what if you were charged a monthly fee for using your debit card? Well, that possibility is becoming a reality.
Starting Oct. 1, banks will only be allowed to charge retailers 21-cents per swipe, which is 23-cents less than the 44-cents they are currently charging. While this decrease in fee will be good for retailers, it has left some banks scrambling for another source of income to make up for the $9.4 billion they are expected to lose.
To solve this problem, many banks have decided to start charging a monthly fee for using debit cards. While fees have not been announced, it has been reported that some banks will be charging as much as $5 per month.
So that you’re prepared, check your bank’s latest fee schedule for details on changes.
Will you still continue using your debit card if you are charged a monthly fee?