Big banks have backtracked on plans to impose debit card fees, but fallout from the Durbin amendment - which caps the “swipe fees” merchants pay banks when customers pay with their debit cards - continues, a new report found.
Celent, a Boston-based financial research and consulting firm, says banks are still looking for ways to cut costs or raise revenue. (Bank of America said Thursday account closings spiked after it announced its controversial $5 debit card fee.) The top considerations: raising checking account maintenance fees, cutting debit card reward programs and imposing or raising fees on other products and services.
“It will take a better part of 2012 for the full effects of Durbin regulations to become clearer, but the early signs are that it won’t reach all of its intended outcomes,” Celent said in the report, a broader study of IT spending in banking.
The firm predicts more regulation and disputes with merchants to come, adding that “the fight and the story are far from over.”