New Fees for Debit Card Purchases

It's quick, convenient, and hassle-free. That makes using a debit card very popular.

According to the latest numbers from Visa and Mastercard there are 520 million debit cards in use today. But those numbers may start to drop.

Bank of America says come January, it will charge its basic checking account customers $5 a month to use their debit cards for any purchases.

Some we talked with say that would be enough to get them to switch banks.

Esther Moon told us, "I would definitely pick a different bank. I know I use my debit card enough that that would keep me from picking that bank."

Amanda Crusch says, "I would definitely stop using it. That's too much. That's kind of unnecessary."

I called around and found most banks don't charge for debit card purchases and have no plans to do so.

Those include: U.S. Bank, ENT, Compass Bank and USAA. Chase and Wells Fargo are testing the idea.

Chase is charging its basic customers in Wisconsin $3 a month and starting in October Wells Fargo will charge a $3 monthly fee for customers in Georgia, Oregon, New Mexico, Nevada, and Washington.

First Bank has the highest fee I found in Colorado. It charges customers $7.50 a year and that annual fee will soon be going up to $10.

The best advice: do as Mark Van Horn.

He says, "I put everything on the credit card, pay my bill in full when I get it and that seems to be the cheapest way to go."

You may not want to consider doing away with your debit card, but that may be your best bet: avoiding fraud issues and pesky fees.

If you have the discipline get a regular credit card and then pay it off every month.

Another option is a secured credit card which comes with fee, but will help you build a credit history while protecting your bank balance at the same time.

Banks are now charging debit card customers because of changes in bank regulations. They're making the cards less profitable.

In fact, some financial institutions use to offer rewards for debit card use. Experts say most are now scaling those back or doing away with them altogether.

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Comments are posted from viewers like you and do not always reflect the views of this station.
  • by keisha Location: colorado springs on Dec 18, 2011 at 06:23 PM
    Hello, my name is keisha mclean and my post has nothing to do with the topic but i tried to email betty sexton and was not able to do so for some reason. well anyway im writting because i have a problem that i need help with i have a 3 year old son and im on social security disability and its very hard for me to make ends meet being a single parent and all. two weeks ago my friend came to take my son to mcdonalds on 8th st. and he took my son to the rest rooms and left his belongings there in the play area well when he came back from the bathroom needless to say that my sons coat was gone and so was the lady it was the coldest night that weve had all winter long so i dont remember the exact nite but i do remember the wheather man saying that it was the coldest night that weve seen. im mostly asking for some assistance getting the video tape of this lady stealing my sons coat . i havent had the money to purchase him another coat yet and i wont be able to untill i get a check for next month this was really mean of someone to take a three year old childs coat on the coldest day of the year and i need some help me at 719-355-0276
  • by JS Location: CS on Sep 30, 2011 at 08:00 AM
    I would not pay a bank to use my own money. This is getting rediculous.
  • by killswitch on Sep 29, 2011 at 10:53 PM
    Us bank charges 25 cents per debit transaction
  • by Fed up with banks Location: Colorado Springs on Sep 29, 2011 at 09:26 PM
    These stupid fees are yet another good reason to dump the traditional bank and join a credit union (BTW, KKTV, ENT is a credit union, not a bank). While banks have to show a profit, credit unions are non-profit and owned by the members. Not only do I not pay a "fee" to use my debit card, but my credit union refunds up to $25 of ATM fees each month!
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