US Bank shuns debit card feesby Martin Moylan, Minnesota Public Radio
St. Paul, Minn. — US Bank announced it will not charge customers fees for using debit cards.
The move comes as other banks — including Bank of America and Wells Fargo — are implementing or testing fees for debit card use.
Banks are looking to recover revenue lost after the federal government ordered big cuts in the debit cad fees merchants pay banks.
US Bank said it will lose about $300 million a year in fee income from merchants. That's not reason enough to charge consumers fees for debit cards, said spokesman Tom Joyce.
"We really don't think that turning around and instituting a fee right now is the right move. Obviously, we were against the debit interchange law that passed," Joyce said. "But moving forward we're not just going to simply turn around and institute a fee at this point."
Bank of America set off a firestorm over its plan to charge customers $5 a month for using their debit cards. Wells Fargo & Co. is testing a $3 monthly fee for debit cards Friday in five states. Consumers Union has urged customers to switch to other banks or credit unions if big banks hit them with debit card fees.
Wells Fargo does not charge Minnesota customers for debit card use. But the bank is testing debit card fees in other states. TCF charges 30 cents for some debit card transactions, depending on which payment network handles the transaction.