During the debates over last year's financial reform bill, banks warned that some of the provisions could raise costs on consumers. The New York Times reports that many Americans could soon face the consequences of that policy, as a number of banks announce they plan to impose fees for debit cards.
Banks faced a steep drop in revenue from their debit card services with the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The law called for the Federal Reserve to impose limits on the transaction fees banks could charge for debit cards, which had averaged around 44 cents per swipe.
In January, the Fed proposed a limit of 12 cents, but eventually raised that to 24 cents in its final decision, assuming certain security standards are met.
In response, national banks like Wells Fargo, Chase and Bank of America as well as regional banks like Regions Financial and SunTrust have all announced plans to impose fees each month that customers use their debit cards. The fees range from $3 to $5 per month.
The Atlantic notes that consumers can avoid the fee simply by not using debit cards, which could spell the end of debit cards to a large degree.