By Todd Sullivan of Value Plays
You’d think this was meaningful the way every news outlet is reporting it. The wasn’t “New Coke” kids
– In response to customer feedback and the changing competitive marketplace, Bank of America no longer intends to implement a debit usage fee.
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“We have listened to our customers very closely over the last few weeks and recognize their concern with our proposed debit usage fee,” said David Darnell, co-chief operating officer. “Our customers’ voices are most important to us. As a result, we are not currently charging the fee and will not be moving forward with any additional plans to do so.”
Black eye when announced, now back patting for “listening to customers”. Pretty simple really. But, what about the revenue they would generate from it? My guess is they (along with every other bank, $WFC, $JPM)) will ratchet up non-network ATM fees for customers and non customers alike. I’m sure we’ll see some other fees. Here is the thing, when we were only talking $5/month for certain customers, it really won’t take much to make that potential revenue up plus some. Heck, even just lagging a few months on bringing down credit card interest rates or leading the pack up will do the trick and then some. That would be the easiest as those folks who carry large balances aren’t likely to be getting another card from another bank at a better rate anyway so they’ll pay…..
Point is $BAC and the other banks will find a way to make the extra $$ they need and also now look like good guys for “listening to customers”
Non story folks….