In 2012, Bank of America’s management made the choice to take on a new beast, the customer. Bank of America has decided to charge a monthly fee for the privilege of shopping with their debit cards on either debit or credit during the check out process. At this time, there have been no plans to alter the ATM fees for customer needing to get cash out. Throughout this study, I have five main points to exam. These are: What caused Bank of America to invoke the fee? What was the cost of customer dissatisfaction? Where there any positive effects on either the business or general public? How are customers fighting back? What solutions could have saved Bank of America the headaches? I will take a look at each side of the puzzle including the consumer, the government, and the business to truly understand the background of the fee and how each group has effected the other. The government has decided to work on behalf of the people and instill a new bill, known as the Durbin Amendment. Named after its creator, Senator Dick Durbin (D) of Illinois, the amendment was imposed to stop banks from collecting excessive fees from merchants at checkout. It has been recorded that the total revenue from fees in 2009 was $19 billion. (Richardson, 2011) Senator Durbin has been quotes as saying, “ after years of raking in excess profits off an unfair and anti-competitive interchange system, Bank of America is trying to pad their profits by sticking it to its customers.” (Richardson, 2011) On one hand, yes Bank of America has been receiving excessive revenue from fees, but isn’t that the point. Bank of America is a business just like any other, and if people are willing to pay the fees that they are instilling, then they have the right to the profits that they are making. If a third party, in this case the government steps in to stop this gain of revenue from the small business owners, then of course Bank of America is going to have to find another way to make up for its...
References: Bookman, J. (n.d.). Bank of America and its $5-a-month debit-card fee. AJC. Retrieved February 9, 2013, from blogs.ajc.com/jay-bookman-blog/2011/10/03/bank-of-america-and-its-5-a-month-debit-card-fee/
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