Regions Financial Corp. has announced that it will charge a $4 monthly debit card fee on certain customer accounts beginning in Oct.
“We disclosed it to our customers late in July, and we will have a $4 debit card fee for some consumer checking accounts but not all,” Regions’ spokesperson Evelyn Mitchell said, BizJournals.com reports. “We didn’t disclose it to the very last tail end of July.”
Regions’ move follows other banks, including Wells Fargo & Co. and JP Morgan Chase & Co., which also recently announced that they were testing out a $3 monthly debit card fee.
Banks are looking for ways to recoup revenue that the soon-to-be implemented Durbin Amendment will cost them.
According to Regions’ CEO Grayson Hall, Regions stands to lose $170 million in annual debit interchange revenue due to the new rules, BizJournals.com reports.
Sen. Sherrod Brown (D-Ohio), chairman of the Senate Banking Subcommittee on Financial Institutions and Consumer Protection, voted for the Durbin Amendment and voted against an effort to delay its implementation for a further study on its impact.
“While this amendment sought to protect consumers, it was telling that any voice for consumers, such as the Consumer Financial Protection Bureau or the Federal Trade Commission, was excluded from the review process,” Brown said. “Although the amendment [amendment to delay Durbin Amendment implementation] did not strike the right balance between the needs of financial institutions, small businesses, and consumers, this issue will not be going away."
Some banks have already begun challenging the Durbin Amendment’s constitutionality through lawsuits while many Republican members of Congress have vowed to work on a repeal of the Dodd-Frank financial overhaul law, which contains the Durbin Amendment.