* Americans could lose access to bank accounts -CEO Dimon
* Banks will raise fees as a result of Fed's proposed caps
By Maria Aspan
NEW YORK, Jan 14 Federal limits on debit card
processing fees will force banks to charge customers more for
services, making accounts too expensive for as many as 5
percent of customers, JPMorgan Chase & Co's (JPM.N) chief
executive said on Friday.
The rules, proposed as part of the Dodd-Frank financial
reform law, would cap the fees that merchants pay banks for
processing debit card transactions at 12 cents each. That is
almost 75 percent less than the average 44 cents per
transaction that banks get now. [ID:nN16280766]
U.S. banks could lose about $13 billion of their annual
industry debit processing revenues because of the rules, which
the Federal Reserve proposed last month.
Bank executives have said they will raise their fees to
compensate for losing debit card processing revenues. They
predict that some people will be unable to afford the fees,
forcing them out of the banking system into the realm of check
cashers and payday lenders. [ID:nN05288788]
The term that the banks use for this is "unbanked."
The rules "will have the adverse consequences of making a
portion of current bank clients unbanked. You will not be able
to profitably serve them," Dimon told analysts during the
bank's fourth-quarter earnings conference call on Friday.
About 5 percent of today's banking customers "may be pushed
out of the banking system," he said.
Dimon's comments were one of the first times a major U.S.
bank executive has quantified the potential effect on consumers
from the Fed's proposed rules.
(Reporting by Maria Aspan. Editing by Robert MacMillan)