Consumers Furious Over Debit Card Fees

October 22 00:00 2011

New York, Oct 22, 2011 ( – According to a report by Fort Washington, which is a Pennsylvania based market research firm, most American consumers are likely to change their bank accounts if the banks introduce a $5 charge for using their debit card. The details of the study are as follows:

  • 30% said that they will have no qualms in switching banks
  • 43% said that they will start using cash or credit cards
  • 13% said that they will pay the fees and use the debit card

Banks were surprised when they received a negative reaction on media when they informed about their plans to lay a debit card fee. Most of the households being targeted made above $40,000 per year. $5 shouldn’t have created such an outrage! However, experts say it is more about the sentiment than about the amount. The average American feels ripped off by the banks and financial services organizations. They will fight tooth and nail to give even a single penny to the banks.

Meanwhile Bank of America CEO, Bob Moynihan explained the banks point of view. The banks were introducing this fee not as a revenue source but as a way to get customers to sign up for the other services of the banks to avoid being charged. It was nothing more than a cross selling attempt.