Wells Fargo Testing Debit Fee
SAN FRANCISCO – Wells Fargo & Co. is testing a monthly fee with some customers to offset revenue losses it expects on debit card payments.
According to American Banker, an affiliate of Credit Union Journal, the bank recently sent notices to customers in Georgia, New Mexico, Nevada, Oregon and Washington to inform them of a $3 fee it will charge in any month they use their debit cards to make purchases. The fee will take effect Oct. 14 and would apply to all payments, whether authorized with a PIN or signature.
Wells warned customers earlier this year that it would make changes because of the Federal Reserve Board’s decision to cap interchange rates at about 24 cents for the average transaction. Today the average is 44 cents.
The bank will consider the pilot successful if it sees “minimal attrition,” a company spokesperson said. Wells decided on the $3 fee because it falls in line with what other banks are considering, the spokesperson added.
JPMorgan Chase & Co. is testing a $3 fee with one checking account in a small market, according to a bank representative. Cards that work only at an ATM are free to use.