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Another Debit Rewards Program Gets Axed

Wells Fargo the latest to cut debit rewardsIt’s been a bad month for Wells Fargo checking account customers.

First, the big bank announced it would begin testing a $3 monthly debit card fee for customers who swipe to make a purchase.

Now, Wells Fargo says it will end its debit rewards program come October.

This bank — and the other bigs just like it — blames this new foray into stinginess on the cap on fees it can charge retailers every time you swipe your debit card at the register.

The government will limit that swipe fee, which averaged 44 cents a transaction, to a maximum of 21 cents later this fall.

From CNNMoney:

“We made this decision due to new regulations that limit the amount of money merchants pay financial institutions for processing debit card transactions,” a Wells Fargo spokeswoman said. “The new cap doesn’t cover all the costs associated with offering debit cards, including processing, administration and fraud.”
The big banks say they will lose billions as a result of the Dodd-Frank financial reform legislation, which includes the swipe fee restrictions.

So Wells Fargo will take away perks, like cash or gift-card rewards for using their cards, and place fees on banking services that used to be free.

Talk about giving your customers incentive to bolt.

Of course, Wells isn’t the only bank to scrap its rewards program.

Chase announced plans to end its program during the middle of the swipe fee debate in Congress. And SunTrust is ending its program as well.

The Dodd-Frank law has become the big banks’ boogeyman in pleading their case for new revenue.

And while banks might be afraid of what this law will cost them, they don’t seem to take into account — or don’t believe it will happen — our ability to put our money somewhere else.

But how much abuse do we have to take before we just walk away?

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Comments (2)
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2 Existing Comments
  1. Norilyn said:
    on August 24th at 10:25 am

    Well Fargo is very shaddy bank. I had money on their bank and they lock me out of my own account and would not allow me to transfer to my other bankk from other institution. I had to report them to BBB before they finally let me close the account.

  2. MARYELLEN said:
    on August 25th at 03:44 pm

    i will not ans niether should anyone else, deal with any bank that wants to chRGE THESE FEES…….we have control as cosumers…not them..pull your money out if you odnt like the rules they want to play….that WILL make them make the right choices for the CUSTOMER