Bank of America has opted to postpone a fee increase for at least a year, according to a Wall Street Journal Report.
In recent months, the banking giant introduced new fees as part of a pilot program in at least three states. In Georgia, Arizona and Massachusetts, the fees have ranged between $6 and $25 monthly. The fees are determined by the account type.
Bank of America is the second largest U.S. bank. The fee increase could affect as many 10 million customers. One reason floating around is that the bank is concerned about events last year that led to the Occupy movement. The fee increase was part of a plan to cut losses due to tighter financial oversight. One spokesperson said that BoA will target its 20 percent of customers who keep lower balances on deposits and who also do not have mortgages or credit card accounts with the financial institution. Not only that, but those who are being targeted usually earn less than $50,000 annually.
Bank of America isn’t alone, though. Several of the nation’s biggest banks are contemplating their own fee increases. Those banks include Wells Fargo and CitiBank, and ideally, the goal is to ensure customers begin using other services in order to waive the fees, for example, promising free checking when you’re approved for mortgage.
A Year Out
The latest news suggest it could be late 2013 before the bank revisits the possibility of raising fees.
Meanwhile, Visa announced late last week that Bank of America has agreed to offer Visa’s digital wallet service called V.me. BoA is introducing it as a pilot program and promises customers the ability to make simple and secure online payments, minus the hassle of having to re-enter credit card information, shipping and billing information, etc. for each transaction.
V.Me
V. me is a new product and service recently unveiled by Visa. Already, it’s become a popular alternative for online shoppers who are looking for safer and easier methods of checking out in both an online and physical environment. It’s compatible with traditional computers, tablets and smartphones. It’s being touted as an easy way to streamline shopping while also offering easy to use budgeting tools that work in tandem with the program.
Consumers may also use V.me to store their competing credit cards, too for easier use when shopping with their MasterCard, American Express or Discover cards. This certainly adds to the convenience factor. When consumers are ready to make a purchase with V.me, they quickly and easily access the card they wish to use simply by entering their email address and password during the checkout process. It’s as easy as that.
David Godsman, Online and Mobile Solutions executive, Bank of America said during a press release,
We look at everything through the lens of the customer and continue to prioritize security, privacy, and fraud protection above all else. We believe our customers shouldn’t have to forgo security for convenience when using a digital wallet. V.me offers customers a greatly simplified and secure checkout process when shopping online without sharing their financial information.
Enrollment is easy for Bank of America customers and it’s part of their online banking service. After they’ve signed up, they can then shop safely and easier. V.me brings additional safety features into play and there many companies that have already incorporated V.me into their offerings. The number of retailers participating is expected to grow quickly, too.
New Dimensions
Speaking on behalf of Visa, Jennifer Schulz who is Global Head of eCommerce, Visa Inc. said,
Visa is committed to delivering a new dimension of convenience and security, one where consumers are no longer required to share personal information at checkout. We believe that Bank of America’s decision to offer V.me to its vast customer base will accelerate merchant adoption and make this digital wallet even more valuable to consumers. In the end, the most successful payment platforms will be the ones with the greatest focus on security and the most benefit to consumers and merchants.
Visa is used in more than 200 countries and is the largest credit card company in the world. It handles 24,000 credit transactions every second of every day. It’s also leads the industry in safety and fraud prevention, as well.
Bank of America is one of the world’s largest financial institutions and the second largest in the United States. It serves consumers, businesses of all sizes and global and domestic corporations with a complete financial offering of banking, investments, asset management and a host of other financial products. It has more than 55 million customers and in the U.S. alone, it has more than 5,500 banks, 16,300 ATMs, online banking that touts 30 million active users and is found in more than 40 countries.
Have you used V. me yet? If so, what was your experience? It’s new product, so we’re looking for those first reactions. Share your story with us.
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