By  Updated on Wed Aug 17, 2011

Wells Fargo to Begin Charging Debit Card Fees

Customers in certain states with debit cards from Wells Fargo will soon be facing a fee for every month that purchase transactions are posted.

MyBankTracker.com reader Chad Grosklags from Georgia, brought the change to our attention after receiving an unsettling letter in the mail. Grosklags, now an ex-Wells Fargo customer, closed his Wells Fargo checking account last week.

Wells Fargo (NYSE: WFC) will impose a $3 fee in every month that customers use their debit cards for purchases starting October 14, according to the notification letter sent to Chad and other customers in the following states: Georgia, New Mexico, Nevada, Oregon, and Washington.

Wells Fargo to Begin Charging Debit Card Fees

Customers will be charged the fee for each month a purchase is made regardless of whether “debit” or “credit” is selected. Any transaction conducted at an ATM will not trigger this fee, according to a Wells Fargo representative.

During a conference in May, Wells Fargo Chairman and CEO John Stumpf said that consumers will end up suffering if there was no delay to the industry-changing debit card swipe fee rules. The rules, that have since been finalized and set to take effect on October 1, will limit debit card interchange fees from 21 to 24 cents per transaction, down from the average of 44 cents per transaction.

The banking industry will be experiencing a significant loss in revenue and have taken steps to compensate for loss income. Some have resorted to increasing fees, cutting free checking, and charging for debit card usage.

Read: Wells Fargo: No Durbin Delay Means More Fees

Stumpf detailed that the bank’s possible responses to the rules included raising minimum account balances, imposing a fee to carry a debit card, adding surcharges to checking accounts, and un-bundling services.

Under the debit card fee caps slated for October, Wells Fargo is expected to lose up to an estimated $812.5 million per year in debit interchange fee revenue, down from the previous projection of a $1.3 billion loss per year provided by a Wells Fargo spokeswoman under a 12-cent fee cap.

If the new debit card fee is applied to customers in all states, it is due to impact over 40 million customers at Wells Fargo, the second largest issuer of debit cards in the United States according to an April 2011 Nilson Report.

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  • Clay

    Will be closing my Wells Fargo account also.

  • Joseph .

    I have three accounts with Wells Fargo and apparently this new fee only applies to my personal account. While I understand that they aren’t interested in my small-potatoes personal account, if they refuse to change their stance I’ll move my not-nearly-as-small business accounts as well. I have zero desire to do business with a bank that is this focused on short-term fee generation.

    Remember when banks were more interested in interest rate spread than in nickle-and-dime fees?

    • Huh?

      Remember when banks had a interest rate environment that enabled them to focus on spread? The Fed just guaranteed low rates for the next two years, qualified credit demand is way down and you still want everything for free? Elections have consequences and the complete re-regulation of banking is one of them.

      • TSP

        not to fear.  consumers will latch onto existing alternatives (ie credit unions) and other banks that use no-fee debit/credit cards as a loss leader.  Net — short-sighted, non-strategic move by Wells Fargo that others will leverage to their advantage

      • Gary

        When is the last time that you were charged a 2.00 check image fee for a checking account that you haven’t written a check for in 8 years and when you go to the bank they don’t know why, and it’s only been two weeks since it changed from Wachovia to WF. It’s called incompatence

        • Jen

          You can avoid check image fee just need to see a banker and have them remove that service from your account you can see anything you need to see by using the free online banking.

  • Nat

    same here.

  • Csjones4750

    EH simple solution everyone go to the store and buy a safe, put these banks out of business, and then they will learn to loan money to people, and not abuse their customers.

  • Owenseric69

    will be closing my account also lot has changed from wachovia what a rip off

  • Kcog105

    Definitely will be closing all my accounts with Wells Fargo.

  • http://pulse.yahoo.com/_CTSQUNTGUL32SEUFVK4JD2Y6HM DG

    Was considering Wells Fargo, but not anymore.

  • Oldbaggiebag

    I think it’s time to buy a safe and keep cash at home.

  • Disgusted

    I closed our Wachovia – now Wells FarDo – account 4 month ago after receiving a letter informing us that if you use their bill pay service that the amount of the bill to be paid could/would be deducted from the checking account 3 – 5 days BEFORE the due date!!!! 

  • Gus

    Actually with all the the fees that banks and credit unions incur due to the interchange fees, it eats into the employees pay.  So while you may be getting a raise next year at your company, financial institution employees will not be able to have that privilege because their raise went to the interchange fee.  That’s why banks do this.  They have to think of their employess too!  Making a new fee, or increasing an NSF one or two dollars also helps to not have to take away employee benefits.

    • John

      Glad that Walmart got their way. They get to save 20 cents on each debit transaction and I get to pay my bank more money to make up for it. But hey, I guess that’s how they can keep rolling back prices. Sell us cheap goods from China and take away our jobs and now have us pay for their cost of collecting money from us.

    • chip

      I know a lot of companies that haven’t given raises for 2 years due to the economy. So Gus you are not alone. The banks are greedy and in these times people don’t appreciate it much.

    • Kevin

      Be greatful that you even have a job.

    • Lollipop10

      Get another job………………….

  • Leach

    I will also be closing my account.  Not sure why I keep it.

  • Losvarela2

    This is why I moved to a credit union! They dont charge as may fees!

  • Dgz62

    Sad that we as consumers have actually saved numerous banks with the money we pay in taxes and
    now we are being penalized again by them charging fees that are unacceptable……When all the customers cancel their accounts, what will they do then….ask for more money????

  • Taylor

    Wuck Fells Fargo.  I know they have to pay their employees too, but to take TARP money, then turn around and post record profits AND attempt to raise fees (on what has to be one of – if not THE – lowest cost transfer of funds)…. is insulting.  My Wachovia account was ‘Free Checking’ – so I suppose that I could simply write a check and not incur the fee, but it would cost both the merchant AND the bank more to process it, so none of this makes sense.

    Yes there is no free lunch, but even BOA is looking better at this point.  I suppose that it is likely to end up at a credit union, because these banks have lost their way.

  • Cecygem

    I really miss Wachovia! :(  In the past 3 months I’ve had to call Wells Fargo customer service numerous times to question fees removed from my account.  I’m shopping around for another bank, so disappointed with this bank.  I feel like I have to check my account a couple of times a day so they don’t take more money and now I have to keep receipts for every transaction because they don’t post purchases immediatly.  Totally Disgusted!!!  I never had any problems with Wachovia and Wells is a nightmare. :(

    • Alias

      I know what you mean. I was grandfathered in so I still have my free checking. But shit like this is ridiculous and when it fails, I hope they realize that majority of people will not be f**k around with. And the ones that will, well, won’t sustain them for long.

    • Roxy

      Bank of America has always treated me well, WF has the worst customer service I’ve ever encountered. A bit of a tip, when calling for help from any company, get a man. lol When ever I had problems I ended up talking to a male supervisor at BOA, I’ve always gotten help. All women today when calling WF, they were a nightmare. I don’t know if I even wanna call them women, brain washed simpletons more like it. Good luck to ya’ll, oh when all else fails go to bbb.org

  • Thomas

    After 30 years as a great wells fargo customer, with over 14 current products and services and a good amount on deposit, WF is showing they know nothing about proper pricing, strategy or cost managment.  For example, in the suburban town I live in – two WF branches sit 2 blocks apart… Do you think we should cut costs?  WF you will be losing our entire family of relationships: my accounts, my 6 kids accounts, credit cards and all accounts related to our small business.  Mr Stumpf and WF, you are fired.

  • Lollipop10

    Losing nearly $1 Billion, I would discontinue debit cards…………it’s child simple… My #1 bank is charging $7.00 to customers w/ less than $500 balance to cover their debit card losses.  We, the ones who try to live by the rules, get stuck with the poor, the irresponsible, and the jerks.    I’m looking for another bank, but will do my homework first.  Wasn’t it our money that bailed out the banks???????

  • BRJNsn1

    1.3 trillion and they want more!! trying to curcumvent the gouging laws,,they can stick it up their A**es.
    Greedy C**********S

  • Scclark88

    I currently have a personal checking account at Wells Fargo, which up until now, was a free checking account. I was informed a few weeks ago that effective in September my account would be charged $7.50 per month for having this account.  Now they are going to charge another $3.00 on top of that!
    They have eliminated the account they used to have for senior citizens.  $10.50 per month is $126.00 per year in fees!  I can put this money to better use for groceries and gas.  I am very disappointed in Wells Fargo and will find another banking institution for my needs.  A credit union, maybe.

  • Vickiejom

    I just received a message on my wells fargo account that not only included the 3.oo debit/credit charge but also no more free checking. They will be charging me an aditional 7.00 a month unless I have at least 1500.00 a month holding in my checking or at least 500.00 worth of direct deposits in my account each month. I like to have more freedom with my money. I have been with wellsfargo for personal and business accounts. I have decided to go to a bank that allows me to be free to do what I want when I want not railroaded into fees I should not have to pay. they are making enough off of me anyway. Farewell Wells fargo and your fradulent ads for free checking. Ps. Their overdraft fees are at 35.00 now. Not that I have that but Im stating this because they charge twice as much as anything bank.
    Closing my account today.

  • ncocasio

    Join a Credit Union people, they are so much better and don’t charge all of these ridiculous fees!!!

  • Arlene Johnson01

    What I have found out is that in Georgia, it goes into affect 11/14/11, not October.  I am not pleased about the banks wanting more of our money…I have an ‘interest-bearing’ checking account with them and if they want to take that away, no big deal…I’m barely receiving pennies on the tens+ per month as it is…  I have been grand-fathered into Wells Fargo – with all the buy-outs that have occurred – just not a happy customer regarding the impending deal – doesn’t matter if it’s $3.00/transaction or $3.00/month – I don’t like paying additional service charges for MY money…

  • JDT962

    Banks are not the only ones who are raising prices (or fees).  Retail stores, gasoline stations, utility companies and others do it all the time.  Banks are not non-profit entities as many would believe.  They are regulated by the government and when one or more behave badly the whole industry has to suffer.  How many individuals were actually harmed by the interchange fee previously?  None.  It was your ‘big box’ retailers who complained and now will pocket that money.  The consequence is the banks will lose that revenue and have to find another way to replace it.  People don’t necessarily come to the banks for loans anymore – they go to Ford Motor Credit, Nissan or whoever is financing the furniture or car you’re buying today.  That’s why the fees are assessed – banks have to make money in order to provide you the services that you still want and request.  Big banks or small community banks or even credit unions provide people with valuable services – but nothing comes free in life…

  • Jdhsrtwo

    will close out as will my two sons

  • Jdhsrtwo

    will close out as will my two sons

  • Rdntst

    Closing out.. will look into other banks and use checks or cash.  I closed out 1 visa debit card because of strange things happening to account.  They were suppose to send me “1″ new visa debit card and I received 11 and my husband who had no problem with his card received a card also…these cards cost money I am sure to make and send so this was a waste of money…They need to look for other ways to cut rather than the debit card charge..Come October I will no longer be with this bank…

  • Rdntst

    Closing out.. will look into other banks and use checks or cash.  I closed out 1 visa debit card because of strange things happening to account.  They were suppose to send me “1″ new visa debit card and I received 11 and my husband who had no problem with his card received a card also…these cards cost money I am sure to make and send so this was a waste of money…They need to look for other ways to cut rather than the debit card charge..Come October I will no longer be with this bank…

  • Jdhsrtwo

    Just received a notice that there also will be no reward points on cards as of Oct. 7th….they have imposed a 5.00 a month charge on accts that have no direct deposit so that took care of the free checking…they are now taking away the reward points and now charging a 3.00 fee for debit card use…what’s next??? This is a shame for customers who have a long history with Wells or with banks that Wells previously took over.  People I have spoken to about this in the last day all have said they will be closing by October…yay for them…I say go credit union…

  • Gary

    Now is the time for Bank of America to drive up their stock from 7.00 to double or triple by going after the Wells Fargo customers because of the new 3.00 ATM card fee.  Whatever bank goes after WF customers will be a winner very quickly.

  • Soph_clark07

    It’s not just Wells Fargo who is charging these fees, and it is not even in every state. Only certain types of accounts will get charged. Times change and to get more benefits out of your bank account you might have to pay 3 dollars more a month… but Wells Fargo is a good bank. They have a lot of cool services and better ways to do things.

  • Quinns73

    If is start seeing this fee I will leave this bank right away. I understand they need to make money but this is outrageous!!! And I will not be with a bank that’s going to charge me to use a card, I will take my chances with cash than a fee. And I will be a td bank banker

  • Sereah1

    BULLSHIT….just another way for rich sons of bitches to make a little extra money

  • Guest

    We will be closing our accounts at Wells Fargo if the fees are not waived or discontinued.  For us it we stay with Wells it will cost us $108 annually.  We have been a customer of Wells Fargo since 1992 and have all out accounts with them.  It is said that due to the Feds finally deciding to do something to help the little guys in business i.e. capping the amount large banks can bill for debit card transactions they now feel it should be saddled onto the consumer.  When will the banks start to realize that people are just trying to stay alive in this ecomony and why don’t they look at recouping that cost via lowering all those big executives pay and bonuses.  Sad to see that they still have not learned anything from our countries financial failing…..

  • Danburch

    Why doesn’t Wells Fargo just take everyone’s money and close their accounts.  That’s their eventual goal.  Corporate greed.  They have to understand that if the economy takes a dump, then WF (and other banks) must take a dump with us.  There’s no need for this charge.  All debit/credit transactions are performed strictly by computer – no bank employee is paid to process the paperwork.  Sure it takes money to run the computer, but this fee has nothing to do with that otherwise this fee would have appeared ages ago.

  • Juan

    I just closed my Premium Checking account and Money Market Savings today I mean I live in California and for my checking account they wanted to charge me 15.00 dollars amount ridiculous. I know the fees varies by state but it just gets me mad what this banks are trying to do. Even if the fee was 7,5,3 or 1 dollar I would have close my account. Now I move to Capital One lets see how it goes free checking and saving account with 1% APY which is great plus they will reimburse any ATM transactions every month up to 25.00 dollars so check it out and it looks like they have great customer service people. Good luck to every one and my advise don’t let this stupid banks take advantage of us. Bye bye wells fargo  :)

  • Juan

    I just closed my Premium Checking account and Money Market Savings today I mean I live in California and for my checking account they wanted to charge me 15.00 dollars amount ridiculous. I know the fees varies by state but it just gets me mad what this banks are trying to do. Even if the fee was 7,5,3 or 1 dollar I would have close my account. Now I move to Capital One lets see how it goes free checking and saving account with 1% APY which is great plus they will reimburse any ATM transactions every month up to 25.00 dollars so check it out and it looks like they have great customer service people. Good luck to every one and my advise don’t let this stupid banks take advantage of us. Bye bye wells fargo  :)

  • VW Atlanta

    I closed my checking and savings account with Wells Fargo because of this new debit card fee.  I found a smaller bank that does not charge this fee.

  • alfredo hernandez

    if they approve that in florida,i will close my account.a fee just for using your debit card?then i will tell my friends not to open an account with wells fargo.

  • Guest

    Not Happy

    I was grandfathered into wells fargo, from wachovia, I have not cared for wells fargo since the change, so we will be closing all our accounts with wells fargo before this charge for debit card take affect,  “I promise, I refuse to stay with them and pay a fee for my own money,  they are crazy,  its too many other banks out there,  and i’m during my research now.

  • Pupshor52

    Everyone get away from these crooks go to a credit union

  • http://www.facebook.com/people/Jodi-Rives-Meier/1081411288 Jodi Rives Meier

    So, correct me if I’m mistaken, but 40 million customers x $3/month x 12 months/year = about $1.4 billion dollars.  Looks like the best thing that ever happened to banking was this new “break” for customers.

  • LG

    I will be switching to a credit union asap!

  • Carmesexy74

    Just think back in the day when your grandparents use to keep money in there mattress and pay for everything with cash or right a check, seems to me that is still the best method keep cash on you, but then you have to worry about getting robbed for your cash, oh wait the bank doing that all ready, I’m only with Wells Fargo because they took over Wachovia, I really havent been happen since this merger,