Banks to start charging customers for using debit cards - KLTV.com-Tyler, Longview, Jacksonville, Texas | ETX News

Banks to start charging customers for using debit cards

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TYLER,TX (KLTV) - Very soon, you may have to pay your bank a little extra if you want to keep using your debit card at stores, restaurants and other places.

This new fee, for many banks, is an attempt to make back some of the money they expect to lose when a new government regulation takes effect tomorrow.

It's a regulation that was intended to help business owners, not hurt consumers.

For many businesses, allowing customers to pay with debit cards actually cuts into profits.

Currently, banks charge merchants an average of 44 cents each time a customer uses their debit card.
But, a new regulation out of Washington D.C. will cap that fee at 24 cents. It's good news for business owners.

"Being a small business and just starting off it really has been a lot so I'm really excited about the new legislation to help lower those costs," said Jana Glossen.

Glossen just opened a scrap-booking store in Tyler. She said she pays about $300 in fees each month because people pay with plastic.

"You have to offer credit cards because it's convenient but it'll be awesome not to have it affect the business as much," Glossen said.

But now, some customers will be taking a hit as a result.

New monthly fees for debit card use range between three and five dollars depending on the bank.
Bank of America said they'll start charging $5 a month next year.

Regions Bank said they plan to charge $4 dollars a month.

Chase plans to test out $3 fees in select states.

Local banks-- Southside and Austin Bank said for now they have no plans to adopt these fees.

If these new fees are something debit card users are not too keen on acquiring, the Better Business Bureau has tips on how to avoid them.

"BBB encourages changing your spending habits, instead of swiping your debit card, use your ATM to withdraw funds and avoid those charges," Olga Mondragon said.

The Better Business Bureau said convenience comes with a cost, and consumers need to decide what they're willing to pay.

This new regulation only affects banks that have more than 10 billion dollars in assets.

In all, U.S. Banks are estimated to lose around 6 billion dollars a year as a result.

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