Chase, Wells Fargo and Other Banks Cancel Debit Card Rewards Program

Chase, Wells Fargo, and SunTrust recently announced they are cancelling their debit card reward program in response to the new rulings on "swipe fees" that limit the amount that large banks can charge retailers for debit card transactions, according to Blake Ellis from CNN Money. In a recent Bloomberg article, Well's spokewoman Lisa Westermann was quoted as saying:

“Due to pending regulatory changes that are expected to result in a significant reduction in fees retailers pay issuers for debit-card transactions, Wells Fargo will no longer be enrolling customers in the debit-card rewards programs.”

The pending regulation would cap debit card swipe fees to $.12, down nearly 70% from what banks can charge today. Banks have been lobbying to try and delay or change the Fed ruling and have warned that the ruling would impact their debit card rewards programs.

These changes will take effect April 15 for Wells customers (March 27 for customers with a Wachovia account). Chase debit card reward points will be eliminated on July 19, although the bank stopped awarding points in February 2011. SunTrust will stop awarding points on April 15 and will existing points will expire on January 1, 2012.

The changes show how banks are changing to deal with new regulations that limits fees on everything from debit cards to overdrafts. Bank of America and Wells Fargo recently announced plans to curtail their free checking programs.