Now that the debit card swipe fee rules have been finalized, Chase has also reaffirmed the death of its debit card rewards program.

Chase (NYSE: JPM) will definitely end its Ultimate Rewards debit card rewards program on July 20 as scheduled, according to a Chase spokesperson.

Many customers have wondered whether the bank would show a little mercy for the program since the finalized debit card fee rules were less stringent than previously expected.

Under the Durbin Amendment of the Dodd-Frank Financial Reform Act, the Federal Reserve finalized the debit card interchange fee limit at 21 to 24 cents, up from the 12-cent cap stated in December 2010. Also, the rules will take effect on October 1, pushed back from the previously scheduled date of July 21.

In March, one month after eliminating free checking accounts, Chase began announcing to customers that the debit card rewards program would be terminated on July 20. Then in April, Chase said it would reinstate the program if the rules were delayed.

A proposed bill by Senator Jon Tester would postpone the rules for 15 months and require a study of the effect of the laws. The bill was defeated in a 54-45 Senate vote.

While Chase did not provide the number of customers that this change would affect, the bank currently has over 9 million debit card customers.

According to an April 2011 Nilson report, JPMorgan Chase held 15% market share, or $161 billion, of the U.S. debit card purchase volume in 2010.

Chase projected an annual debit interchange revenue loss of $1.3 billion as a result of the fee caps. By that calculation, utilizing the current 44-cent average and 12-cent cap per transaction as the baseline, Chase may now lose as much as an estimated $812.5 million per year under the new fee limits.

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  • Pdlewton

    Chase…JP Morgan, buyer of WAMU and an internal collection department that puts itself above the law and financial requirements of the state. Chase not only cheats its customers on accounts by practicing the withdrawl of debits before deposits of the same day, but also directly internally debited my Chase checking account for $1348.24 with no prior communication to me. They didn;t provide and documentation or explanation to me. Based on my own investigation, through local branches and some unofficial internal investigaition that provided some internal information, I found out they took, no stole the $1348.24 for old previous Overdrawn account I had with WAMU (Washington Mutual) that I had paid back to WAMU years previously. Wamu had even allowed me to reopen an account with them since I paid it off. That was before JP Morgan/Chase bought them out and trashed all the WAMU customers.

    This is an ongoing investigation and Chase-JP Mogan doesnt even care. 

    • Pdlewton

      Additional thought. I used all the correct legal methods, even faxing and sending correctly formatted legal letters to the Internal Collection account inside Chase that internally debited my account demanding an explanation and documentation on why they took it without any communication or notification. I never got any answers even though I have a signature where they received my registered letter. I also heard they are very aggressive in going after homeowners that short sale or are foreclosed on their homes. 

      As I said, they think they are above the law.

      • guest

        Whats that have to do with the debit card rewards?

  • Gyt

    Glad I got rid of Chase last year when they first mentioned deleting this program.  I have been using my credit union since and am happy I made the switch.  My checking, savings, mortgages, and credit cards are with my credit union.. Banks are sharks today and consumers are their prey.