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JPMorgan Chase Won’t Charge Debit Card Fee As Big Banks Back Away


A month after Bank of America Corp. got pummeled by consumers and politicians for introducing plans for new debit-card fees, most other big U.S. banks are steering clear of imposing similar charges.

Following eight months of consumer testing, J.P. Morgan Chase & Co. has decided that it won’t charge customers who use their debit cards to make purchases, according to a person familiar with the bank’s plans. The New York bank’s Chase retail unit is one of the largest U.S. consumer banks, with 26.5 million checking accounts and 5,300 branches.

J.P. Morgan joins U.S. Bancorp, Citigroup Inc., PNC Financial Services Group Inc., KeyCorp  and other large banks that have said in recent days that they won’t impose monthly fees on debit cards. None of those banks said they made their decisions because of the outcry over Bank of America’s fees.

“We looked at all options and quickly decided it didn’t fit with our overall strategy,” said David Bowen, who runs the consumer-product business at Cleveland-based KeyCorp, which ranks among the 20 largest banks in the country.

Banks are loading fees onto customer accounts in an attempt to recover billions of dollars in revenue that will be lost from new restrictions on debit cards, credit cards and overdrafts. Most big banks have already eliminated free checking for customers who don’t meet certain criteria on their accounts, such as minimum balances or a certain number of direct deposit transactions.

Bank of America Corp. has begun laying plans to charge millions of customers $5 a month if they use their debit cards to make purchases. The bank is still working out details of its plans, which likely won’t affect all customers, according to a person familiar with the situation. SunTrust Banks Inc. of Atlanta, is also tacking a $5 monthly fee on some debit-card users, while Regions Financial Corp. of Birmingham, Ala. is charging $4 a month on some accounts.

Wells Fargo & Co. is testing a $3 monthly debit-card fee in five states.

READ MORE: CHICAGO TRIBUNE



One Response

  1. Probably because they didn’t want to lose business to all the banks who are advertising “move your accounts to me – I don’t charge fees”

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