As predicted by banking execs across the country, a new federal law that takes effect Oct. 1 already has consumers picking up the tab for banks expecting to lose out on substantial revenues.
According to The Baton Rouge Business Report, Oct. 1 marks the start of new rules regarding swipe card fees, or the amount of money banks charge merchants for each debit card transaction.
Before the Dodd-Frank financial bill passed Congress with the included “Durbin Amendment” on swipe fees, banks charged an average of 44 cents for each transaction. The new 21-cent cap on swipe card fees is less than half of what banks were able to charge, prompting new banking fees for customers in an effort to recoup the losses.
Regions Bank South Louisiana Area President Danny Montelaro tells The Business Report that his bank expects to lose out on $9.5 million after the law takes effect, which is why the bank on Oct. 1 will begin charging $4 a month for its customers to use a debit card.
The Birmingham, Ala., based bank is introducing a handful of other fees for customers, though some of the increases can be waived if certain deposit and minimum balance requirements are met.
And Regions is not alone in its quest to recoup revenue. According to the Business Report, other banks such as Chase have made bold changes to counter the new law, while IberiaBank and Capital One remain tight-lipped on their strategies:
Chase Bank has done away with its rewards program, spokesman Greg Hassell says, but it has not added any fees for debit card use. On Aug. 24, Chase's Total Checking account—its most basic account, for which most new customers sign up—began charging a $12 monthly fee if minimum direct deposit and account balance requirements are not met.
But other banks with a presence in the Capital Region are reluctant to discuss the possibility of new fees. IberiaBank spokeswoman Beth Ardoin says no changes have been made to fee structures, adding that officials "see no benefit in getting involved in the conversation" about their strategy to recoup lost revenue from the swipe fee.
Read more from The Baton Rouge Business Report here.
For more on the uncertainty banks are feeling from the financial overhaul, read our June report from ABiz, “Regulatory Recession.”
1,595 rigs were exploring for oil and 332 for gas. A year ago there were 1,738 active rigs.
Prestigious honor annually recognizes a single attorney for excellence in public interest/pro bono work.
JPMorgan Chase is giving $1 million to Louisiana's community and technical colleges, to help with workforce training efforts to match students to available jobs.
Law firm unveils newly renovated 200-year-old building.
UL grad named web developer at BBR Creative
Lafayette-based emergency department staffing and management company raises $120 million in senior credit facilities through GE Capital, Healthcare Financial Services.
High-rise apartment building, parking garage, hotel and retail part of new development.
The number of Louisianans with jobs continued to set records in September, but the state's unemployment rate kept rising.
Louisiana is drowning, quickly.
An investment group led by Macquarie Infrastructure and Real Assets will buy the Louisiana power company Cleco for $3.4 billion.
Local developer’s Lake Charles Gardens LLC purchases buildings and leases; land still owned by Dugas family.
Economist Loren Scott says Louisiana is in the midst of an industrial boom unlike any other in its history, with more than $100 billion in industrial projects either under construction or in the engineering and design phase.
The Louisiana Treasury holds $18 million in Israel Bonds — bonds that earn 2.868 percent when the three-year U.S. Treasury is yielding 1.08 percent.
ABiz celebrates another class of Acadiana's most influential female trailblazers, the Lourdes Foundation honors a local philanthropist and MedExpress in Opelousas celebrates its 22nd year as the “little ambulance service that could.”
Is Louisiana’s O&G industry ready to head south of the border?
Downtown’s newest live-work space for creatives doubles as a gallery for other upcoming artists to show their work.
A maritime case originating in Lafayette federal court could become a game changer for the oil and gas industry.
Here’s what’s at stake in the November Senate race — regardless of whether Republicans gain control of the upper chamber.
From the publisher’s in-box: ABiz reaches out to Lake Charles, time to “Come Home, Louisiana,” and now accepting nominations for Entrepreneur of the Year.
In late September Cleco and UL Lafayette showed off the Cleco Alternative Energy Center, where researchers explore ways to generate power by using renewable resources.
The most recent promotions, hirings and announcements from Acadiana's biz community.
While Amendments 1 and 2 will shield some health care providers from the budgetary whims of Gov. Jindal, they could make higher ed even more vulnerable to cuts.
Age 60 looks good on the country’s second-largest oil and gas show.
Local pieces and logo-emblazoned corporate gifts
Let’s show how much we care what it looks like.