That will be $3, please.

Everyday before starting their morning, my parents watch the news. Sometimes debating each other about what was just said or yelling at the T.V. about what was just said. I am sure this does not sound unusual, because I am sure a lot of people like to know what is going on in the world around them. After all, news is something that can bring people closer because it is how people receive their information, good or bad.

Well about a week or so ago, my parents hear that starting in October the bank Wells Fargo will start charging its customers a $3 fee in order to use their debit card. Though neither of my parents are with Wells Fargo, they are concerned, mostly my dad, that Bank of America will follow suit My mom other hand is with the Credit Union and says that they are usually the last to start anything.

According to News Press, Wells Fargo will test the fee in five states: Georgia, Nevada, New Mexico, Oregon and Washington; however, the reason why these states were chosen is unknown, for now.

Though this fee is usual, Wells Fargo is not the first major bank to test whether customers will be willing to pay to use their debit cards. Chase last year began testing $3 monthly debit card fee in northern Wisconsin.

The article also reports that the industry's experimentation with fees partly in response to a new regulation that will the reduce the revenue that banks collect on checking accounts.

Unfortunately, this test comes at a time when writing checks are obsolete and debit cards are king.

An Associated Press Poll in June found that about two-thirds of consumers use debit cards more frequently than credit cards, i.e. me, a college student who does not even own a credit card, but do use my debit card quite often. The study also asked how they would react to the added fee, 61 percent said that they would find another way to pay.

The whole point of the debit card is to prevent people from carrying large sums of cash around. No one wants to go to the bank and take out large amounts of money, especially when they are out and are unsure of how much money that will spend during their outing. It will be interesting to see how people's spending habits change if this new fee becomes permanent.

Articles:
http://www.news-press.com/article/20110821/BUSINESS/110821007/Wells-Fargo-test-3-fee-debit-card-use-five-states?odyssey=tab|topnews|text|Home

http://www.ap-gfkpoll.com/pdf/AP-GfK%20Poll%20June%202011%20FULL%20Topline_CL%20and%20DC.pdf