Wells Fargo to charge $3 fee per month for debit cards

August 17th, 2011 - 11:06 pm ICT by Aishwarya Bhatt  

Washington, Aug 17 (THAINDIAN NEWS) Wells Fargo has rolled out a new program to charge customers in five States $3 every month for debit card use. The financial institution has subsequently sent letters to customers in those states telling them about the new charge. The fee will automatically affect customers who use their debit cards within the month.

From the 4th of October this year, customers of Wells Fargo in Nevada, Georgia, New Mexico, Washington and Oregon will be charged a flat rate of $3 for the use of their debit cards. It has become necessary for banks to find new sources of income on debit cards because the new US banking regulations will force banks to reduce the amount that they charge customers to acquire debit cards. The new federal regulation will come into effect on the 1st of October.

ATM transactions by Wells Fargo customers will be free but credit and debit card purchases will continue to attract charges. Wells Fargo is the second largest debit card company in the United States and the new measure will affect an estimated 40 million customers.

If the pilot plan is successful, the bank will roll out the program to the whole of the United States.

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