Rate limits for the cost of card swipe

     Bank of America Corp. plans to charge customers $ 5 a month for debit card purchases next year. Andrew R. Johnson joined the Axis of the PM to explain. Several other major banks, including JP Morgan Chase & Co. and Wells Fargo & Co., are testing or plan to perform similar tests in some states. Regions Financial Corp., a lender of Birmingham, Alabama base, said it will begin charging a monthly fee of $ 4 to use debit cards in some accounts on 1 October. The new federal limits "load slip" debit card U.S. banks is expected to cost about U.S. $ 6600 million a year in lost revenue. To compensate for this loss of revenue, many banks have eliminated or reduced the flow of rewards programs, said the monthly payments and current accounts increased a minimum balance for customers to avoid fees.

     Rate limits for the cost of card swipe, one of the most controversial provisions to be caused by the financial crisis, was closed by the Federal Reserve Board in June and will take effect Saturday. The new rules of the CAP charges merchants 24 cents to pay the bank every time a customer buys something with a debit card, compared to the current average of 44 cents. The rules apply to banks with 10 billion in assets. Bank of America said it expects the caps, the industry lobbying against for months to clear $ 2 billion in revenues annually. "The economy of providing a debit card has changed in the latest regulations," a spokesman for Bank of America announced Thursday.

     In an internal memorandum, Bank of America said it would pay $ 5 fee for each billing period in which the customer uses a debit card purchase. Not trigger an automated transactions at ATMs. Payment of standard current accounts, but not the more rewards accounts held by wealthy clients. Banks generally exempt from the premium accounts of many of their rights, because they are generally more profitable than the standard small balances proportions. Alison Miller, Bank of America customers in West Windsor, New Jersey, who used her debit card several times a week, said that thinking of switching because of the new tax. "It 'just another way of gouging customers," he said.