Support for LAist comes from
We Explain L.A.
Stay Connected

Share This

This is an archival story that predates current editorial management.

This archival content was written, edited, and published prior to LAist's acquisition by its current owner, Southern California Public Radio ("SCPR"). Content, such as language choice and subject matter, in archival articles therefore may not align with SCPR's current editorial standards. To learn more about those standards and why we make this distinction, please click here.


Use Your BofA Debit Card for Purchases? Get Ready to Pay a $5 Monthly Fee

Photo by Dmitriy Shironosov via Shutterstock
Stories like these are only possible with your help!
You have the power to keep local news strong for the coming months. Your financial support today keeps our reporters ready to meet the needs of our city. Thank you for investing in your community.

If you're a Bank of America customer and you swipe that handy debit card for purchases, get ready to have a $5 monthly fee charged to your account starting in early 2012. The bank announced the impending imposition today, and intends to use the added revenue to help pad themselves against losses they'll incur on new caps placed on fees merchants pay for debit transactions.

"The fee will apply to customers with various checking accounts during any month they use their debit card to make a purchase. The fee will not apply to customers who do not use their debit card to make a purchase or who only use it to make ATM transactions," explains the Wall Street Journal.

Bank of America spokeswoman Anne Pace told Reuters on Thursday: "The economics of offering a debit card have changed." She added that "customers expect certain features for their accounts, like overdraft and fraud protection, and the [new monthly $5] fee will offset some of those costs."

Debit users are a pretty easy target to find such fees applied to their accounts. Usage of debit cards for point-of-sale transactions has become widespread, and is on the rise. Both Chase and Wells Fargo have been testing a similar fee in some markets, but neither bank has made a final decision to make those fees permanent.