As you know, I’m a weekly columnist for Black Voices News. This week’s article is about the new fees that are going into effect from Wells Fargo. If you’re a Wells Fargo customer you definitely want to keep reading:
I’m sure by now you’ve heard the news that Wells Fargo debit card customers in Oregon, New Mexico, Georgia, Washington and Nevada will be charged a $3 monthly fee for using their debit cards beginning Oct. 14, 2011. The new fee is due a change in the ways that interchange fees are collected. If you’re not sure what an interchange fee is or why it matters, please keep reading.
Interchange fees are a small percentage of each transaction when you use your debit card. Someone has to pay to process that electronic swipe or hand-written signature and that costs money. The fee was $0.44 before the Federal Reserve ruling. The Fed wanted to lower it to $0.12, but after a lot of heated discussion from financial institutions the fee was lowered to $0.21 instead. The great part of this, for those of us that use credit unions, is that “financial institutions under $10 billion (like SCE FCU) are exempt” according to SCE Credit Union’s Chief Operating Officer, George Poitou. You probably don’t care what the fee is as long as you don’t have to pay it, and for those of you that choose to use large financial institutions, this is where it gets interesting.
Read the whole article here
Shay Olivarria is the most dynamic financial education speaker working today. She has written three books on personal finance, contributes to multiple online media platforms, and is a foster care alumni. She’s been quoted on Bankrate.com, FoxBusiness.com, and The Credit Union Times, among others. Visit http://www.BiggerThanYourBlock.com to find out more about her work.