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Tuesday, November 15, 2011

While debit card fees have fallen (for now), many banks look to other revenue (fee) alternatives

Observation:  A recent story from the New York Times explains that while the debit-card fee battle may be finished for now, the relationship modifications between banks and consumers may be far from over.  Click here to see the story.

Implications:    I’m not convinced that consumer’s reaction to debit card fee increases was about the expense of it… or simply the shock of it.  Would consumers have tolerated a charge of $2 per month now, and slight increases every year or two until the bank reached an amount they could be happy with?  If they had marketed the reasons behind the change a little bit better, would more customers have been upset but accepting?

Some of these other new fees will give us clues about what might work, as consumers either protest or begrudgingly accept them.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

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