New debit card fee for Wells Fargo customers

[Free4Life11]

The one thing I will give Wells Fargo credit for is not charging me an overdraft fee:

I had a pending transaction hit my account on Thursday bringing my Available Balance below $0 (but my balance stayed above $0). My paycheck was direct deposited the very next day and the pending transaction posted on Monday. Although I received an overdraft letter, I was not charged an overdraft fee.

Not that I think I SHOULD have been charged a fee, but I've read that many banks WILL assess a fee based on the available balance and not the posted balance.

The Dodd–Frank Wall Street Reform and Consumer Protection Act;

The Durbin Amendment also gave the Federal Reserve the power to regulate debit card interchange fees, and on December 16, 2010 the Fed proposed a maximum interchange fee of 12 cents per debit card transaction, which CardHub.com estimated would cost large banks $14 billion annually. On June 29, 2011, the Fed issued its final rule, which holds that the maximum interchange fee an issuer can receive from a single debit card transaction is 21 cents plus 5 basis points multiplied by the amount of the transaction. This rule also allows issuers to raise their interchange fees by as much as one cent if they implement certain fraud-prevention measures. An issuer eligible for this adjustment, could therefore receive an interchange fee of as much as 24 cents for the average debit card transaction (valued at $38), according to the Federal Reserve. This cap—which will take effect on October 1, 2011 rather than July 21, 2011 as was previously announced—will cost banks roughly $9.4 billion annually, according to CardHub.com.

Thanks for posting the details.

Here is how I would re-write the bolded:

This cap—which will take effect on October 1, 2011 rather than July 21, 2011 as was previously announced—will save merchants, small business owners, and other "job creators" who rely on consumer purchases roughly $9.4 billion annually, according to CardHub.com.

 

[hazelB]

This is an example how Well Fargo made customers suffer.

 

[hazelB]

New banking regulations are having a large impact on how some banks operate. Financial services regulations are also requiring a lot of changes. Several financial institutions in the U.S. try to make up for lost money by charging new fees. These fees are expected to impact between 40 and 90 million consumers. Banks set to start charging Durbin debit card fees because the interchange fee cap was part of the Durbin financial reform. Durbin fees are fees that the banks are charging to make up for the loss of revenue from the capping of debit-interchange fees. Interchange fees are charged by banks to process debit card transactions, and they have been capped at 24 cents. The fees previously averaged 44 cents per transaction.

Starting in October, Wells Fargo plans on charging a $3 per month debit card fee in Washington, Georgia, New Mexico, Nevada and Oregon. Those states are expected to bring in more than $200 million. If the fee does not anger or scare away too many customers, Wells Fargo intends on rolling out the fees nationwide.

 

[Swimalie]

If the fee does not anger or scare away too many customers, Wells Fargo intends on rolling out the fees nationwide.

Wow, what an amazing statement by whomever wrote it. "Scare away"? That's what they think of us customers?! Ugh.