By Eileen Buckley
Buffalo, NY – US Senator Charles Schumer says many area consumers are unaware that banks in Western New York are charging hidden debit card fees. Schumer appeared in Cheektowaga Monday to unveil legislation he's proposing that would force banks to reveal those fees up front.
More and more consumers are using the quick swipe of a debit card to purchase all kinds of items.
"I swipe my card through and I almost always hit debit, punching in my PIN," said UB student Shayna Sarafin." "But I was unaware that I could be charged for doing that."
Sarafin appeared with Schumer at the Walden Galleria, explaining that she frequently uses her debit card to buy groceries. But Sarafin says she has not spotted those fees on her bank statement.
Schumer says she is among many Western New Yorkers who think using a debit card is free. The Senator says some banks charge as much as $1.50 a transaction. Schumer is proposing legislation that would require banks to notify consumers of the fees at the point of sale and include a separate area on monthly bank statements that indicate the total debit card fees.
"Most consumers think a debit card is just like a credit card," Schumer said. "They look the same -- you swipe them. With a credit card, they never charge you if you pay on time. But a debit card they well may."
Schumer says banks imposing the highest fees in this region include Charter One and Citibank. A new study by the New York Public Interest Research Group shows that over 50-percent of all banks in the state charge hidden fees for debit card use.
NYPRIG'S Western New York Regional Coordinator Mike Davoli says Schumer's legislation would give consumers a chance to decide if they want to pay those fees at the point of purchase.
"You put the information out there. When you go to an ATM, they ask you if you want to withdraw that money," Davoli explained. "They give you that choice. That way you get the most updated information every single time."
Davoli and Schumer stressed that the proposed legislation does not prohibit banks from charging the fees. But Schumer says the burden would be on the banks to make sure stores disclose the debit fee information before the card is swiped for a purchase.