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Durbin Amendment’s First Victims: Debit Reward Programs
Posted By Jim On 03/28/2011 @ 2:50 pm In NEWS | 41 Comments
The Durbin Amendment , which would limit debit interchange fees on debit cards to a mere 12 cents, is set to take effect soon but large banks are already cutting reward programs in anticipation of the amendment.
If you have a reward debit card from a large bank (over $10 billion in assets), then expect to see them kill your reward program. Wells Fargo is no longer offering the program to new customers as of March 27th for Wachovia customers and April 15th at Wells Fargo customers (existing customers will keep the program for now). JPMorgan Chase told its customers that the program will end on July 29th. SunTrust will end its program April 15th. (link )
Curious if you’re bank is a large one? This list from the National Information Center  shows the top fifty bank holding companies and each one has over $10 billion in assets. What you won’t find on this list, usually, are those smaller regional banks that offer reward checking accounts , which need debit interchange fees to pay for the higher yields.
The writing is on the wall: If you like your debit reward cards, you’ll need to find a smaller bank.
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 Durbin Amendment: http://www.bargaineering.com/articles/durbin-amendment-limit-interchange-fees-12-cents.html
 link: http://www.bargaineering.com/articles/high-interest-reward-checking-accounts.html
 list from the National Information Center: http://www.ffiec.gov/nicpubweb/nicweb/top50form.aspx
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