Wells Fargo to test $3 debit card fee

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I wonder how many would close their account(s). I would take my money out so fast their heads would spin.

hey, somebody has to test the waters!

I would be a little mad, but $3 for a debit card is worth the convenience to me.

But, I suspect that the bank would actually lose money if everyone switched over to cash because they would need to count more cash, transport more cash, and refill atms more frequently. Also, I think that the bank would have less money on deposit on average and would be losing out on interest.

It seems like these fees create an all-or-nothing situation for the banks that charge them. The fee is waived if your mortgage is with the bank, or if your auto loan is with the bank, or if you deposit accounts are over some 5 figure number, or if you direct deposit your paycheck, or... So the only people left paying are the ones who use more than one bank or who just want to use a checking account, (editing, premature posting) which can't be what's in the bank's best interest. These fees eliminate any real chance for a customer to consolidate accounts into the bank adding these charges.

I hate getting nickeled and dimed, so if I still had WF I would close right away. I closed my WF account when chase offered me $150 to open a new account with them, I asked WF if they would match the offer and the teller said very rudely "we don't give away money here". I have not had any problems with chase. I do have a credit union for some of my money, but find it a bit inconvenient to use since there are not as many branches around.

Quote: Alan

I would take my money out so fast their heads would spin.

I hate defending Wells Fargo, but compared to what Citibank did to the customer who owed too much on his credit card, Wells Fargo's $3 price increase ain't so bad...

Three dollars per month is a small price to pay for a thing that I don't use. Sign me up!

I really don't have any issues with WF (at the moment), I've been a customer of theirs for years. But it just rubs me the wrong way when companies try to squeeze their customers for every nickel. I understand that they have overhead and the need for revenue, but give me a break.

Quote: s2dbaker

Three dollars per month is a small price to pay for a thing that I don't use. Sign me up!

I think this is a per transaction thing, very steep really... "in addition to" monthly fees

A $3/month debit card fee doesn't sound like much of a problem - except that, IIRC, every Wells Fargo ATM card is also a debit card, so, in effect, there would be a $3/month fee for the privilege of using Wells Fargo ATMs to withdraw money from a Wells Fargo account.

If WF didn't offer a no-fee standalone ATM card as a replacement, I would be out of there almost as fast as Alan.

Quote: odiousgambit

I think this is a per transaction thing, very steep really... "in addition to" monthly fees

"Wells Fargo plans to test a $3 monthly fee for its debit cards starting this fall."

Quite clearly isn't, on the first line.

I'd walk from this bank if they did that. Electronic banking shouldn't be costing them that much per month to maintain.

They don't charge in relation to their costs, they charge what the traffic will bear.
With all the exceptions to such charges, I think its just a way to nick those who are not financially or mentally nimble enough so in effect its an added fee on those who are poor or lazy or elderly or simply unsophisticated enough to do anything but lay back and enjoy it.

Banks seem to have forgotten how to make money by lending money. Used to be the rule of 4/6/4. 4% on savings accounts, lend at 6%, hit the golf course by 4:00 PM. Funny how I walk into my bank about once a year. I don't even live in the same state as my branches. In fact, the only time I have been inside one of my branches this year was to complain the ATM wouldn't accept a deposit! And if I hadn't been in another state for business I would have mailed the deposit or just dropped it in my local CU and just sent it in ACH. Yet somehow they find the need for more fees, even a fee if my direct deopsit value is not of a certain level!

This is in response to the Dodd-Frank Act of 2010. Wikipedia

Basically, the act gives the Federal Reserve the ability to regulate the amount of fees that the merchant's bank (passed to the merchant, of course) must pay to the customer's bank (which isn't passed on to the customer, of course) for the privilege of accepting a given type of financial transaction. These fees are called "Interchange fees." Banks loved debit cards because they had the highest interchange fees of commonly used transactions.

The changes, published by the Fed a couple of weeks ago, are supposed to lower these fees by approximately $9.4 Billion, annually. The fees go into effect October 1, 2011.

Quote: FleaStiff

They don't charge in relation to their costs, they charge what the traffic will bear.

So now that the banks will receive something that is (relatively) relational to their costs for processing the transaction, how will they make up all those billions of dollars of profit? Three dollah, Three dollah, Three dollah...

I can't remember the last time I used a debit card over the Visa/MC networks. Years.

Quote: FleaStiff

With all the exceptions to such charges, I think its just a way to nick those who are not financially or mentally nimble enough so in effect its an added fee on those who are poor or lazy or elderly or simply unsophisticated enough to do anything but lay back and enjoy it.

That's a lot of people. Won't someone think of the Republicans? (<-- This is a joke and is given with a smile. If it's taken wrongly, I apologize in advance.)

I don't care about a per transaction fee, as I get 6 other bank ATM transaction fees per month reimbursed to me by my bank. (And transactions at my bank's ATM's are always free.)

However, a monthly fee would impact my bottom line. That $36/year is a case of good beer, or a movie, popcorn and a soda with my wife.

It's only $3 now.

Years ago when we only had checks, check cashing was just about free everywhere at first. That morphed into all sorts of conditions whether balance or fees.

Quote: rxwine

It's only $3 now.

Years ago when we only had checks, check cashing was just about free everywhere at first. That morphed into all sorts of conditions whether balance or fees.

Yep. How about this bank. Look out Floridians.

Link

$5 a month..

"...those with higher balance requirements to avoid higher monthly maintenance fees -- do not have the new debit-card fee."

There ya go, stick it to the little guy again. We'll make sure you never reach that higher balance, 'cuz we'll charge you $5 a month for using your card to access your money. I'm starting to despise banks.

What's the advantage of a debit card over a credit card in the first place?