BofA May Test New Pricing Packages for its Customers

by Mercator Advisory Group 0

The market continues to test new fee-based account strategies in a bid to gain back lost revenue from overdraft fees and the anticipated revenue impact of the Durbin Amendment.

Consumers will be asked to participate in how much or how little they might pay based on product usage and baselines that provide some measureable gain to the financial institution.

The largest U.S. retail bank may create a tiered price system that rewards its best customers for maintaining a minimum current account balance, using credit cards a certain number of times per month, or conducting all banking transactions electronically.

Reuters reports: The largest U.S. retail bank may create a tiered price system that rewards its best customers for maintaining a minimum current account balance, using credit cards a certain number of times per month, or conducting all banking transactions electronically.

Customers who do not adhere to certain rules will be charged a higher fee, the newspaper said.

“We are not guaranteeing that we will recover all of the revenue lost as a result of the new regulations, but over several years we think we will get back a good share,” Joe Price, head of BofA’s consumer bank, told the paper.

Read full article:

http://www.reuters.com/article/idUSTRE68J0IA20100920?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+reuters%2FbusinessNews+%28News+%2F+US+%2F+Business+News%29