NEW YORK — Angela Malerba, who works in public relations in Boston, carries a debit card because she likes to know that she has enough in her account to pay for what she buys. But paying $5 a month to use her own money? That’s too much.
So when Bank of America starts charging the fee next year, Malerba figures she’ll rely more heavily on her credit card. Or, in a strategy that seems almost quaint, she might just carry more cash.
“Paying $60 a year in debit-card fees just seems absurd,” she says.
The 38.7 million people who carry BofA debit cards will face a similar decision in the latest example of banks raising fees or establishing new ones — not just for debit cards but for visiting ATMs or talking to a teller.
BofA’s announcement follows tests by Wells Fargo and Chase of $3 monthly fees for debit cards in some markets.
In 1995, debit cards accounted for only 1 percent of the transactions when people pulled a card out of their wallet to pay for something. Credit cards made up the rest. Today, there are more than 530 million of them in use in the U.S. Two out of every three times someone reaches for plastic, it’s debit, according to the Nilson Report.
Banks have cashed in big. They collect about $19 billion a year from swipe fees. But today, that revenue will be cut almost in half. Federal rules will cap the amount banks can charge merchants at about 24 cents a transaction, down from an average of 44 cents.
Customers are frustrated. Jose Bucheli, a graduate student in Albuquerque, thought back to the economic crisis of 2008, when banks pledged to stand with customers. “But whenever they have the opportunity, they impose a new fee,” he said.
