Fee Changes on the Horizon for Bank of America Debit Cardholders

recently announced that it will begin to charge its customers a debit card fee.

The $5 monthly fee will be charged to clients who use their debit card to shop beginning the early part of 2012. The fee will be charged only if the card is used in that manner, according to a Reuters report.

Clients can still use their debit cards to withdraw money from ATMs, pay bills online or mobile phone transfer, according to a Washington Post report which also states that some banks have eliminated free checking or ended rewards programs.

This is part of a larger movement by banks and financial institutions to raise fees and increase investment on previously free services, like checking accounts.

Many believe this is due to newer regulations on banks including the Dodd–Frank Wall Street Reform and Consumer Protection Act, due to go into effect on October 1. The act caps fees banks can charge merchants for processing debit card transactions at 21 cents per transaction from an average of 44 cents, which banks say will cost billions of dollars.

Senator Richard Durbin, who created the debit fee reform act, didn't mince words as he described his opinion of the debit fee.

"Bank of America is trying to find new ways to pad their profits by sticking it to its customers," he said in a statement. "It's overt, unfair, and I hope their customers have the final say."

Banks including Wells Fargo and Chase are testing $3 monthly debit-card fees, according to the Denver Post. The report also states that Regions Financial, based in Birmingham, AL, plans to start charging a $4 fee next month. SunTrust, is currently charging a $5 fee.

Still many banking locations in Hazelwood city limits are keeping the debit card a free option. On 's website, the financial institution has many rewards programs for new and existing customers and still shows no fee for debit card use.

echos the same model as well as and .

According to Bankrate.com, 45 percent of non-interest-earning checking accounts are free, down from 76 percent two years ago.