On Thursday, Bank of America announced that they would charge customers a $5 monthly fee to use their debit cards. Initial reaction through the internet and news channels was that Bank of America just made an idiotic move that would anger customers and eventually lose them. That’s a prime example of first level thinking. Stating and reacting to the obvious.
But when you really sit down and think about the move, you can see there’s definitely more than meets the eye or at least what’s being reported in the news (what a concept!). First, we know that people are generally lazy and will not go through the hassle of switching banks (paperwork, time, etc) second, BOA isn’t the first bank to do this, and third, if the general trend is for banks to charge fees for using debit cards what’s the alternative? CREDIT CARDS.
Not a bad move by the banks, as credit is where the banks can make A LOT more money.