This past year, several banking institutions announced that they would be initiating monthly fees for all debit card users. Since the large swipe fees charged by banks have been capped at just 24 cents, banks no longer had the profit margin they desired. That’s why banks decided to implement a monthly fee so they could continue to fund the huge bonuses that bankers have gotten used to. Luckily, there are ways that debit card holders can avoid these absurd fees.

1. Change Banks. Many large banks gain their money from large corporate finance deals, selling credit default swaps, and creating collateralized debt obligations. Therefore, it might be better to switch to a different bank that has your concerns in mind.
   • Smaller Banks: As banks get smaller, they have more time and space to focus on serving their individual customers. Many small banks don’t charge a fee for checking accounts or debit cards. Not to mention, they are usually local businesses, so banking with them will help out the local economy.
   • Credit Unions: One of the best things about credit unions is they are owned by the members. That’s why they are less likely to charge absurd fees and more likely to make decisions that benefit the members.
   • Brokerage Firms: Affluent individuals may benefit from creating a cash management account with a brokerage fund. You receive a debit card without a fee and have continuous access to your money. Most large brokerage firms charge fees for the account, but many discount brokers don’t charge anything. For those who don’t have a lot of money, a reloadable debit card may be a good route to take.
2. Use a Credit Card. While some people may argue that you can easily get into debt by using a credit card, if you are ready to control your own spending then it could be a great option. Simply use the credit card based on the amount of money you have in your checking account and then pay it off immediately with the money you have in your checking account.
3. Pay Cash. This may seem impossible for some since many people say they either never have cash on them or they always spend more when they use cash; but paying for things with cash could be prove useful and help avoid unnecessary bank fees.
4. Write a Check. With the continuous technological boom, checks were sort of placed on the back burner. It used to be done routinely, but now not many checks are circulating the financial world. However, checks are a good way to avoid unscrupulous banking fees so use them when you can.

About the author:

Compass Technologies is the company behind Kwik-Loan consumer finance software and Kwik-Dealer indirect lending software.