NY senator to propose debit fee disclosure

NEW YORK -- The New York Public Interest Research Group (NYPIRG), which produces an annual survey detailing ATM fees, has turned its attention to fees charged by New York state banks for debit purchases.

According to a recently released NYPIRG study, almost half of New York state banks charge a fee for such purchases. Unlike ATM fees, which are disclosed before the transaction occurs, debit card surcharges are generally only disclosed in monthly bank statements.

According to a Newsdayreport, the study found that 47 percent of 31 New York banks surveyed charged fees that averaged 86 cents per purchase, with some as high as $1.50.

 

The NYPIRG survey found that Apple Bank and New York Community Bank each $1.50, for purchases where the customer swiped a debit card and entered a PIN to pay. Astoria Federal Savings, Carver Federal Savings, Emigrant Savings and GreenPoint banks all charged $1, the survey found. Chase and Bank of New York charged 50 cents.

Schumer said he plans to propose legislation mandating that customers be notified of any fees at the time they use a debit card to make a store purchase, and not only in their annual policy statement. He also wants such fees included on the customer's monthly statement.

 

"Some banks do notify customers each month," said Susan Craine of NYPIRG. "But they don't break it down in a way that's easy to spot."

 

"You're going to charge people a fee, you tell them," Schumer said at a Manhattan news conference. "That's the American way."