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Industry News

How consumers can avoid looming debit card fees

By Joseph Trigliari

26/08/2011 - It's inevitable: Banks and credit card issuers are going to begin seeking new revenue sources to supplement the lost income stemming from the soon-to-be-enacted cap on debit card "swipe fees." How exactly card companies do this remains the key question.

Unfortunately, and if history is a lesson, banks are likely to burden consumers with new charges to make up for the lost income. Wells Fargo, SunTrust and Regions banks have all announced plans or explored ways to raise revenue through debit card charges.

However, it's often the case that banks will give account holders the ability to opt out of such charges, while some customers - particularly those of institutions such as Citibank and U.S. Bank - may not see charges at all.

"Banks generally give consumers a way to avoid these fees, but they may require a higher minimum balance or a broader banking relationship," reports Bill Hardekopf for the Christian Science Monitor. "Wells Fargo customers, for instance, can avoid the fee if they sign up for designated checking accounts or don't use their debit cards."

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