Bank of America’s new debit card fee– new trend?
Sep 30th, 2011 by sammiechan
Recently, Bank of America, U.S.’s largest bank by deposits, announced that they will implement a new $5 fee for debit card users in 2012. The 5 dollar monthly charge targets the bank’s debit card users for using their cards to make purchases, but the debit card holders are still able to get free cash withdrawals. This risky move by the bank raises a common question: will they lose customers or will other banks begin to follow? If other banks begin to follow, Bank of America card holders will have no other choice but to pay the required monthly fee. Thus, those that were thinking of switching to another bank, it is most likely not worth the switch. High chances are that the fee charge is a new trend here to stay.
My view on this article is that this change can be risky yet smart. Considering if the other banks do not follow this trend, then Bank of America will lose its customer base, and people will choose other banks. However, if other banks implements this fee as well, then Bank of America will have an advantage of being first.
Picture: http://topics.nytimes.com/top/news/business/companies/bank_of_america_corporation/index.html
Read more on this article here: http://www.bbc.co.uk/news/business-15133612