Bank of America charging $5 fee on debit card purchases

Beginning in 2012, Bank of America will begin charging a $5 monthly fee for debit card purchases. The fee will be charged regardless of the amount bought with the card, or if consumers choose the “credit” instead of “debit” option during a purchase. Customers can avoid the fee by not using their card at all, or by drawing money from an ATM.

Bank of America may be the first to impose such a fee, but it most likely will not be the last. Banks now face limitations on how they may gain revenue from merchants, including a cap on the fees banks can charge, and must turn to other options to make up for that loss.