Major Banks Plan to Charge Fees for Using Your Debit Card

News reports on Friday, September 30th, indicated that several major banks were planning to begin charging customers a monthly fee for using debit cards.  These fees could be as high (at least for NOW) as $5 each month.  That’s $60 each year!

After spending years and millions of dollars convincing customers that using a debit card was THE way … fast … convenient … easy … to pay for purchases at the grocery store, gas station, dry cleaners, and every other merchant with a swipe machine at the register, now the banks want to charge you, the consumer, for the privilege of spending your own money.  The bankers have decided that they aren’t making enough money by charging the merchants for this service.  Now, they want to dig into your wallet, too!

I’m confident that the bankers will tell you that you really have no alternatives … you can’t slow down or stop the wheels of commerce from turning.  However, I’m going to suggest that you DO have options.  They are …

  • Pay Cash – the commercials will try to convince you that the use of real money (rather than plastic) will cause the wheels of commerce to come to a screeching halt if you don’t swipe your card.  That’s OK!  It’s YOUR money and you have the right to spend it in whatever manner is best for you.  If you aren’t in the habit of carrying cash, the good news is that, at least for now, the bankers aren’t planning to charge you for withdrawing your money from your own bank’s ATM’s.  Rather than getting charged for swiping your card through the merchant’s machine, get your cash from you own bank’s ATM and pay cash.  This saves both you and the merchants money … and lower merchant expenses could lead to lower prices.  Don’t believe me?  Look at the gas stations that charge one price for their gasoline if you pay with cash and a higher price if you pay with a credit card … and, in some cases, with a debit card!
  • Change banks – yes, it is inconvenient; but, as a consumer, you have a right to demonstrate your genuine displeasure with your bank’s new policy.  Vote with your feet, and with your money, by taking your business to a bank that values your business and doesn’t feel compelled to squeeze every last penny out of your pocket in order to enrich its stockholders.
  • Join a Credit Union – credit unions are not-for-profit financial institutions that are owned by their members and operated for the benefit of those members.  Traditionally, credit unions have avoided many of the fees that traditional banks have charged and kept costs low for their members.  Many credit unions offer the same services as their traditional banking counterparts but charge lower, more reasonable, fees … in some cases, services are provided without the imposition of (yet another) fee.

Yes, you do have choices … but only if you are willing to make the changes that are necessary in order to send a message to your banker