Credit Unions Debit Card Fees

October 28, 2011 by staff 

Credit Unions Debit Card FeesCredit Unions Debit Card Fees, It’s been all over the news for weeks and people everywhere are being fired up about it. Even President Obama recently aired their complaints to ABC News, saying it was unfair to customers. That’s right – we are talking about bank charges.

So what happens to the bank and the banks, why do they charge to customers? It’s simple economics, really.

Profit banks lend money to consumers and businesses. However, with current low interest rates, banks should charge lower lending rates and therefore make less money. In addition, new federal regulations have forced banks to change its committee structure in overdraft fees and late payments on credit cards.

They have to make up the shortfall somewhere, so it in turn to charge customers several new fees. And because interest rates are expected to remain low for some time, you can expect rates to go in the foreseeable future.

According to a recent newspaper article from the Associated, here are some of the lowest of the big banks will soon announce:

• Bank of America plans to introduce a quota of 5 per month and to make purchases with debit cards.
• In December, Citi will charge to 20 per month to some customers who have a balance of less than 15,000 and their combined accounts.
• Last week, Wells Fargo began 3/month charge and debit cards in five states.
• Earlier this year, JPMorgan Chase began charging a fee and debit card 3/month in Wisconsin and Georgia.
• In June, SunTrust Banks of Georgia introduced a rate of 5 per month and debit card for customers with basic checking accounts.
• Earlier this month, Regions Financial Corp. of Alabama began charging customers a fee and debit cards 4/month.

But all this bad news could be a big break for community banks and regional credit unions, which are affected by many of the new regulations. The big bank customers are angry – and increasingly angry – and the environment is perfect for smaller banks to compete!

As rates rise, customers are beginning to consider their options. Now is the time for community banks and credit unions to get aggressive and the market posing as a viable alternative.

If your bank has not done so, start an advertising campaign promoting its “quota free” offerings. Newspaper ads, e and post campaigns on social networks that your bank or credit union has to offer than the big banks – especially check and debit cards! equips financial institutions with the tools they need to thrive in today’s financial market. Our web platform that puts you in total control of the marketing process for the production of your bank or credit union – all for a fraction of their ongoing marketing costs. For more information, visit or contact Neal Reynolds. Blog Follow Neal.

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