News

Wells Fargo abandons monthly debit fee pilot program

October 30, 2011

According to Bloomberg.com, Wells Fargo & Co. has abandoned plans to charge a $3 monthly debit card fee after the program was met with customer opposition.

Piloted in Georgia, Nevada, New Mexico, Washington and Oregon, the program was set to begin on Nov. 15.

"As we adjust to changes in our business, we will continue to stay attuned to what our customers want," Ed Kadletz, head of the bank's debit and prepaid card business, said in a statement. "This means understanding their needs."

According to the article, Wells Fargo has said that the interchange fee caps imposed by the Durbin Amendment will cost the bank about $250 million a quarter in lost revenue. Programs such as the monthly debit fee are one way banks can try to recover some of the lost income.

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