You can thank Dodd/Frank for that $5!
http://www.realclearmarkets.com/articles/2011/10/03/thank_dodd-frank_for_your_debit_card_fees_99288.html
Here's a snippet, the rest can be read at the link:
And if you like that cast your peepers on this link:
Thank Wal-Mart for your new bank card fee
When Bank of America announced last week that it would charge $5 a month to customers who make purchases with their debit card, customers railed against the bank.
Many conservatives and libertarians said the anger should be aimed at Congress and the Obama administration, which, through last year's Dodd-Frank financial regulation bill, effectively outlawed the old debit card business model, spurring Bank of America to make this change.
But the real culprit is Walmart and the retail lobby, which used government to squeeze banks and fatten their own bottom line. Walmart won, banks lost, and now customers are stuck with a new monthly fee.
Here's the background: Whenever you use a credit card or debit card to buy something at a store, the credit card processor (like Visa or Mastercard) and the issuing bank (like Bank of America or Chevy Chase Bank) both take a cut. The store may only get $9.70 on a $10 purchase.
How is that rate -- the "interchange fee" -- set? Until this year, it was set by market forces. Visa and Mastercard offer stores a service that facilitates sales and brings in more business. In return, they demand a cut of the sale. Walmart and Joe's Corner Store aren't required to accept debit cards or credit cards, but they do, which means that they decided the price was worth it.
Retailers, of course, wish the card issuers and processors would provide this service for free. Businessmen are always looking for a better deal. The businessmen in this case decided to employ regulatory robbery to get their way. Led by Walmart and the Retail Industry Leaders Association, retailers pushed for a federal cap on interchange fees.
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http://campaign2012.washingtonexaminer.com/article/thank-wal-mart-your-new-bank-card-feeOh yeah, almost forgot, make sure you read this closely to see who Walmart lobbied.
Melissa Merz, a former press secretary for Durbin, lobbied for Walmart on the financial regulation bill, as did former Durbin legislative aide Donni Turner. The Durbin alumna were both at the Podesta Group, and the firm's lobbying filings indicate both lobbied on "Senate financial services regulatory reform legislation."
Imagine that, Dick Durbin.
