Debit card fees, bank fees and the unintended consequences you pay for

I recently read a short article in Money magazine lauding the efforts of the woman who mounted the campaign against the $5.00 monthly fee for debit cards. You may recall that fee was imposed by banks after Congress passed the financial reform law that also cut in half the transaction fee retailers are charged to $.22 per transaction. That cut was after lobbying by big box retailers so in effect they took money from the pocket of banks to give to retailers with no benefit to customers of either.

That “victory” over debit card fees was short-lived as banks sought to make up for lost revenue, the same banks by the way we all bailed out and whose balance sheets we want strengthened. Here is one example.

Federal law limits transfers you can make from a savings account to six per statement cycle. However, ATM and in person withdrawals and transfers are exempt from that limit. Banks charge a fee if you exceed the limit.

However, now at least one bank and likely others are charging fees for the same transactions even when you use an ATM or make the transaction in person. Of course you can avoid the fee if you keep a lot of money in the account, in this example, $15,000. You can see the information I received fom my bank below (I added bold and comment).

Here is the point, Congress is stupid and so are the people who rally the troops in protest naively believing there are no consequences to such action. Instead of a fee on the people who choose the convenience of a debit card, we have fees on anyone who puts money in a savings account and wants to use their money in any way they choose. Needless to say, there are many other new fees popping up in banks every month.

I can’t help but wonder what was wrong with charging the retailer $.44 per transaction for the convenience of not having to deal with cash from customers or the paying higher fees for credit card use? Oh, I know, the big retailers wanted to increase their earnings …bazinga!

From: Chase Online
Subject: Re: Account Inquiry

Date: 04-11-2012 15:34:34

Dear Mr Quinn,

We apologize for any inconvenience you may have experienced in regards with the fee on your account.

Federal Regulations limit the number of checks, preauthorized transfers and withdrawals that can be made from any savings or money market savings account. The regulation also requires us to make sure that these transactions do not go over the permitted limits.

Each monthly statement period, you can make up to six withdrawals or transfers out of your Chase savings or money market savings account if you complete them in one of the following ways:

– By check or debit card
– Overdraft Protection advances
– Any online payments or transfers, including those on
chase.com
– Telephone transfers
– Wires or other funds transfers
– Any other payments to any third party

During any monthly statement period, you are not limited to the number of withdrawals from or transfers out of any savings or money market savings account if you complete them in one of these ways:

– In person at any of our branches
– At any ATM
– By mail

Please note that a $5 Savings Withdrawal Limit Fee may apply to this account for each withdrawal or transfer out of your account over six within a monthly statement period. Any withdrawal or transfer out of your account, including those done in person at any of our branches and at any ATM, count toward the Savings Withdrawal Limit Fee.

To help avoid Savings Withdrawal Limit Fees, you can easily track the number of withdrawals and transfers out of your savings account in a monthly statement period through Chase Online(SM) and Chase Mobile(R) or by setting up account alerts.

For additional details, please see your Deposit Account Agreement. [In a seemingly endless document in 4 point type]

If you require further assistance, please e-mail us via the Secure Message Center or contact Chase By Phone

Thank you,

Internet Service Center