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 BoA 5.00 debit card fee

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topflight
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Number of posts : 4
Location : Morrisville
Vehicle : S13 KA-T
Registration date : 2011-10-01

BoA 5.00 debit card fee Empty
PostSubject: BoA 5.00 debit card fee   BoA 5.00 debit card fee EmptySat Oct 01, 2011 3:04 am

As I am sure some of you have heard from various media sources. Bank of America made it publicly known that they are going to start the 5.00 debit card fee's in the beginning of 2012. This has sent the masses into an uproar and as they are starting to pull their money out there accounts, followed by closing them. How ever I took it upon myself yesterday to physically call BoA and ask a few questions. Needless to say I have found a loop hole and I plan on exploiting this to say a messily 60.00 a year.

First call I spoke with a rep named Nancy
1. If I chose to run my card as debit instead or credit will I still acquire the 5.00 fee? yes, cause its a debit card that tied to your checking account.
2. Since my acct is setup as student acct with no monthly minimum balance or service fee's am I still subject to these fee's? yes, as long as you are using your debit card you will acquire these fee's.
3. Well, I also have a BOA CC, when I use that is there going to be a service fee's? No, the CC is a total different type of acct, and there's no fee to be associated with them.
4. So, basically I can make purchases with my BOA CC, then go home and do a balance transfer from bank acct to my CC to avoid these charges? that's 100% correct.
5. Other than pulling cash from the ATM machine, is there anyway to avoid these silly charges? Yes, there is, you would have to have something called an Advantage relationship with the bank.
6. What exactly is an advantage banking acct? it's a relationship where you have to have 50k+ invested in the bank though CD's and bonds, stocks and so on.
7. So basically it's another way for the higher tier income holder's to stay on top and pretty much screw over the lower to middle class? sadly yes as well as the employee's.


Thought I would call back and ask some of the same questions, spoke with Carlos. He seemed a bit more educated on this matter.
8. What about payments made over the phone with my debit card, where I am get charged a service fee though my cell phone provider and ISP, am I now going to acquire a double fee to make payments over the phone with my debit card, one from BOA and another from the ISP or Company? No sir, will not be assessed a double fee, for that is regulated by the government and is considered illegal. How the fee works is this, if you use your card at a point of sales you will be charged a 5.00 fee. whether you use the card one time or 3000 times, you will only receive this fee once a month. Now, if you need a replacement card they will charge you a 5.00 replace card fee, unless it's a fraud related case where the card is out of your hands, then that replacement card fee will be waved.
9. OK, the reason I ask this is because the media up here in Philly Pa, made it sound like that acct holders will acquire the fee anytime you use the debit card and that the fee's will start in Oct. No sir, the word from BOA corporate is that the fee's will not be implemented until early 2012.
10. Sounds good and just to me, I just want to clarify that the 5.00 fee is just a one time fee a month whether I use the card once a month or OVER 9000! and that the mass of sheeple have caught the dumb? Yes sir you are correct it's jut a once time fee of 5.00 and that BOA will send information out to all acct holders in reference to this process 1 month prior to it being started.

OK. Well it's been great talking with you as I now understand that mass's y u no understand. You have a great day sir. You too sir, you have a great day and enjoy your weekend.

So there you have it, from their mouth to my ear drum, Since I carry both a BOA Credit Card and a BOA Debit card that is linked to a bank account. If I use my CC for all my regular purchases, come home or get online I can transfer the funds from one account to the other, Thus avoiding the 5.00 monthly fee. (those of you that have BOA account's know that you can transfer funds with in BOA from one of your acct's to another, or like I have done in the past from mine to a roommates BOA with no service or transaction fee's.) Frankly it makes me feel like the guy that figured was first to figure out the old cheat code on nintendo. king you know which one I'm talking about: up, up, down, down, left, right, left, right, a, b, start.


One of the many Articles on this subject.
dailyfinance(dot)com/2011/09/30/big-banks-boost-fees-again-what-are-you-going-to-do-about-it/
Quote :
Bank of America's (BAC) announcement this week that it would start charging a monthly $5 fee for using a debit card to make purchases is the latest in banking industry upcharges for services. In addition to debit fees, ongoing hikes in overdraft and ATM charges mean fewer fee-free options for banking services, and increased balance requirements to get them. The bottom line is that consumers are now paying more to use their own money.

Other large U.S. banks, including Wells Fargo (WFC), J.P. Morgan Chase (JPM) and SunTrust (STI) are testing or planning monthly debit fees, according to Reuters. Citibank (C) has not announced a plan to charge for debit card use, but it has increased fees for checking accounts with low balances, and increased balance requirements for free services. For example, starting in November, holders of Citibank's EZ Checking accounts will have to maintain a balance of $6,000 across linked accounts or pay a $15 monthly fee.

Free checking accounts are increasingly rare. Two years ago, 76% of non-interest checking accounts were free. That figure has now dropped to only 46%, according to a recent survey by Bankrate.com. The survey also reported that overdraft fees are now an average of $30.83 and the average out-of-network ATM fee is $3.83.

The rising fees reflect the big consumer banks' efforts to offset billions in predicted losses due a fee-cap on merchant-processing fees under the Durbin Amendment. The new law goes into effect on Saturday, and caps interchange fees at 24 cents a swipe, previously that averaged 44 cents.

The net effect of higher fees for consumers, whether for debit card use or banking services, is especially troubling for younger people with lower incomes, says Andrew Schrage, 25, a personal finance blogger at MoneyCrashers. "These fees can severely hamper workers' ability to accomplish essential goals like saving for retirement or working to build an emergency savings fund," he said.

But the fees may not be a game changer for the debit card business, said Greg McBride, senior financial analyst at Bankrate.com. At least not yet.

"Fees are an exception, not a rule, and savvy consumers are not going to stand for new fees and higher fees," he says. "A lot of consumers will do a different method of payment or take their business elsewhere." His theory is that consumers will move to smaller or online banks, with lower fees, or use cash more often to avoid debit card and other fees.

According to the FDIC there more than 6,350 commercial banks in the United States. The debit swipe fee changes only affect institutions with at least $10 billion in assets -- less the 2% of them.

For consumers trying to navigate the new minefield of higher debit charges, the options include switching back to cash, using credit cards, or changing to a bank with lower or no fees. At DailyFinance, we'd like to know how these fees affect you, or if they've caused you to change your spending habits. Please share your experience in the comments section.

Catherine New is a staff writer with DailyFinance.
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