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Beware of New Debit Card Fees

Debit card issuers can no longer charge hefty overdraft fees unless you opt into their overdraft protection service. And much to their dismay, customers haven't been signing up in droves. So how are they making up for the lost overdraft fee revenue? New fees, of course.

But shouldn't debit cards be "free" to use in the first place? Well, in the past, debit card users grew accustomed to using their cards as a transaction-free method of payment. However, more and more consumers are now reporting the appearance of annual fees and/or transaction fees on their bank statements.

The most common debit card fee is a charge per transaction that could range anywhere from 10 to 25 cents or more. You might be able to avoid the additional fee by choosing "credit" at the cashier and paying without entering your PIN, but this may not even work in all situations.

If you find your debit card has new transaction fees you're not willing to pay, consider switching to a no annual fee credit card which can still be used at no additional cost to the consumer. Just remember—pay those credit card bills on-time and in full each and every month!

on Mon, 2010-10-11 17:00