Shore Area Banks Say They Won't Charge for Debit Cards

Local banks say they won't follow the lead of the nation's largest bank to charge customers for the use of debit cards.

Like cell phones and MP3 players, debit cards have become nearly ubiquitous in recent years, representing the payment method for about half of consumer purchases nationwide, according to recent banking industry data. But the nation's largest bank – Bank of America – announced last week that it would begin charging some customers $5 per month to use the cards, which deduct money from a customer's account when they purchase an item at a store or online. The cards can also be used as traditional ATM cards to deposit and withdraw money at teller machines; Bank of America customers who use their cards only for ATM purposes won't be charged the fee.

Bank of America has blamed the new charge on a loss of revenue it will realize when a federal law goes into effect Oct. 1 that will reduce the amount it can charge businesses per card purchase, from 44 cents to 21 cents. But local banks in the Shore area contacted by Patch say they have no plans to charge customers who use their debit cards for purchases.

"At this point Manasquan Savings Bank is not planning on instituting fees on our Debit Cards and are planning on continuing with our rewards program," said Peter M. Brown, the bank's president.

Manasquan Savings Bank does review its price structure annually, however, Brown said.

Likewise, Heather Newcomb Hardwick, a spokeswoman for Sun National Bank, confirmed that Sun has no plans to charge for the use of debit cards.

Representatives from two other banks, The Provident Bank, and Shore Community Bank, also said they would not charge customers. OceanFirst Bank did not respond to a reporter's e-mail.

As for other national chains, Sun Trust Bank has announced new fees, though that bank does not operate in New Jersey. Wells Fargo, which has numerous locations in Ocean and Monmouth counties, is testing $3 debit card fees in limited markets, the company has said.

According to the International Business Times, TD Bank, another popular Shore area bank, has no plans to charge customers who use debit cards.

Local banks may find it easier than large banks to avoid imposing debit card fees. Banks with assets of less than $10 billion are exempt from the law limiting how much they can charge in card processing fees.