Negative reactions from customers, law-makers, and even President Obama have led to Bank of America and other banks within the industry to terminate their controversial $5 monthly debit-card fee.

Hugh Son reports in his article on Bloomberg.com, “Debit-Fee ‘Flop’ Leaves Banks Seeking $8 Billion” that Citigroup Inc. and U.S. Bancorp had originally dismissed the idea of imposing new charges, and SunTrust Banks Inc. and Regions Financial Corp. got rid of their check-card fees last week.

Banks are currently looking for other ways to regain revenue after the Federal Reserve capped fees on debit-card purchases last month. Authorized through the Dodd-Frank Act, the legal limits cut bank’s annual revenue by an estimated $8 billion. Nevertheless, customers have made it known that the bank’s money-making strategies will not be on their dime.

Sources:

http://www.bloomberg.com/news/2011-11-02/debit-fee-flop-leaves-u-s-banks-looking-for-8-billion-in-lost-revenue.html