Right now, every customer who uses a debit card could be using a credit card instead. And each one could also share in the increased interchange income.
If the industry works seriously with the reasonable critics of its fee practices - the ones who stress disclosure - it can safely ignore the rabble-rousers.
For the vast majority of Americans, the role of the bank is to be there when the customer wants it to be there. Like the water company. Like the electric company.
Instead of fees, banks need to focus more on the customer experience. Things like being open seven days a week and staying open an extra hour each day are what will build loyalty and retain customers.
When the profits and losses of the debit card unit suffer as regulation clips revenues, the banks increase fees, discouraging debit card usage. Any pretense to customer focus goes out the window.
Thinking you can do whatever you want to your customers because you're the biggest and most economically significant bank in the country is reckless and foolhardy.
How can anyone imagine that the solution is to charge for debit cards and not checks. You want customers to use checks instead? Avoiding paper makes cultural as well as financial sense.
Is Bank of America charging for debit cards because it is shortsighted or because it is too bloated to compete against smaller institutions for consumer accounts?
Financial services can actively contribute to making people's lives better and deliver profits for providers. The Compass Principles provide a roadmap for answering the question, "How?"
