One Way Or the Other

Bank of America plans to charge customers who use their debit cards to make purchases a $5 monthly fee beginning early next year, joining other banks scrambling for new sources of revenue.

US banks have been looking for ways to increase revenue as regulations introduced since the financial crisis limited the use of overdraft and other fees.

The Dodd-Frank Act's Durbin amendment, due to go into effect on 1 October, caps fees banks can charge merchants for processing debit card transactions at 21¢ per transaction from an average of 44¢, potentially costing banks billions of dollars.

Banks also face broader operational challenges as low interest rates and higher capital requirements hit profitability, and the sluggish economy depresses loan demand.

Other large US banks including Wells Fargo, Chase and SunTrust are testing or planning monthly debit card fees.

"The economics of offering a debit card have changed," Bank of America spokeswoman Anne Pace said on Thursday. Bank of America is the largest US bank by assets.
~ from Bank of America Debit Card Fee Plan Met with Resistance and Anger via Reuters ~

This report offers a good object lesson in why it is so difficult to regulate big corporations. Legislation is passed to curb the gouging of customers through exorbitant fees and the major banks simply find a new avenue to continue with the gouging.

This is the way it goes all the time. Plug one hole and they create more. Plug those and they create even more. On and on it goes. They always remain one step ahead of the curve!