Bank of America Hits Debit Card Users With $5 Fee

Bank of America will slap a $5 monthly fee on some customers who use their debit cards to make purchases, reports Dow Jones Newswires.

“The economics of offering a debit card have changed with recent regulations,” a spokeswoman told Dow Jones. (Customers that only use debit cards at an ATM machine may avoid the monthly fee.)

In October, the Dodd-Frank financial reform law will lower “interchange fees,” which is the amount banks can charge retailers for debit transactions. Fees for retailers will shrink from 44 cents to a cap of 24 cents, which has led some debit card issuers to seek other ways to make up that revenue.

More