With new regulations coming that will limit interchange fees, the amount of money banks charge retailers for debit card transactions, Chase has already begun testing $5 ATM fees and is considering putting a $50-$100 cap on debit card purchases. Now comes the news that the bank is going to pull the plug on most debit card rewards programs starting in July.
Chase had already announced that, as of February, new customers would not be enrolled in the rewards programs. But the company had said it would allow existing customers to continue on with the rewards.
Letters are being sent out now to customers explaining the situation. According to Bloomberg News, customers can continue to earn points through July 19 and those points will not expire.
Included in the rewards programs being cut are Chase’s Continental and United airlines-branded debit cards. Not only will holders of these cards no longer be able to rack up points starting on July 12, but on April 1 they lose the luxury of a free first checked bag on the airline.
JPMorgan Will Cease Debit-Card Rewards Program Because of Proposed Fee Cap [Bloomberg]
Debit cards will get less rewarding [Houston Chronicle]