Regions Bank axes new debit card fees

In response to negative feedback from customers, Regions Bank says it’s eliminating monthly fees it enacted a month ago for debit card use, effective today, and will refund any fees already incurred. “We are committed to providing an exceptional customer experience and are continually adapting our products and services in response to the needs and preferences of our customers,” says John Owen, head of Consumer Services for Regions Bank, in a prepared statement. “We have heard from our customers and are responding to their feedback by eliminating the monthly fee for CheckCards.” Customers who previously incurred a debit fee will not need to take any action to receive a refund, the bank says, adding that refunds will be credited to accounts on Friday. Regions enacted the fees on Oct. 1, the same day banks across the country began receiving smaller fees from retailers for customer use of debit cards at the checkout. Retailers now pay banks 21 cents each time a customer uses a debit card, less than half of the 44-cent average before the new rule went into effect. Regions Bank South Louisiana President Danny Montelaro has said the bank’s 90 regional branches were facing a collective $9.5 million loss in revenue due to the fee reduction. The new fees, which amounted to about $4 a month for most customers, were to help make up the lost revenue. Montelaro was not available for comment this morning on what the bank’s new plans are to recoup the lost revenue.