Fewer Debit Card Rewards Programs, More Fees Coming from US Banks

Paying for things with a debit card has become extremely common in the United States, but that may soon change. US banks are getting rid of popular debit card rewards programs and, in some cases, charging monthly fees to customers who use them.

Debit card rewards programs usually offer special "points" awarded every time a card is used to make a purchase. Sometimes points are also rewarded for making minimum monthly deposits or for carrying a high checking or savings account balance. Customers can redeem the points for gift cards, popular electronics, or even cash in many cases.

Wells Fargo, one of the country's biggest banks, has just announced that they will end their debit card rewards program for both existing and new customers in October. Several other banks will probably me taking similar steps in the near future.

Why is this happening? Because of new federal regulations that limit "swipe" fees banks charge retailers for processing debit card transactions. Banks claim the new laws force them to make up for lost "interchange-fee income", which is why they're ending debit card rewards programs and, in some cases, adding new fees to checking/debit card accounts. Banks claim that the new fees will not apply to ATM transactions.

We say: We already pay WAY more than enough for our Wells Fargo and Bank of America accounts here in Nevada, which just so happens to be one of the "test" states for the new Wells Fargo debit card fees. Looks like it's time to start paying for everything with cash... which sucks!! They better at least keep the new fees low... :P

Learn some mo': Banks Test Monthly Fees for Debit Cards