Even before the Fed's Dodd-Frank-mandated move to slash fees on debit card swipe transactions, we've been talking about the demise of various consumer services.

Free checking was said to be on its last leg, as was various debit card rewards programs. We don't doubt that we're going to see a reduction in both. JPMorgan Chase, in fact, has just scrapped its rewards program for all customers. Previously, it scrapped the program for new customers. That has now been applied to all. Starting in October, no debit cards rewards will be handed out at all.

The explanation to CNNMoney was pretty much what you would expect: "We made this decision due to new regulations that limit the amount of money merchants pay financial institutions for processing debit card transactions. The new cap doesn't cover all the costs associated with offering debit cards, including processing, administration and fraud."

There are plenty of institutions still willing to offer these programs, though the economics of them are changing. We'll no doubt see more banks raise fees explicitly. JPMorgan for example has been experimenting with a $3 monthly fee in  Georgia, New Mexico, Nevada, Oregon and Washington. And you can bet the big consumer banks--as are all banks--are pondering ways to return value to loyal customers in innovative ways. Rewards programs aren't dead, they're just changing.

We've noted before that more banks are considering ways to monetize online statements using Groupon-esque offers that some think stands as one of the more exciting current revenue opportunities. We think more banks will be forced to roll these out, as the public is starting to show a real preference for these sorts of deals.

For more:
- here's a CNNMoney article

Related articles:
Banks ponder the Google NFC opportunity, time to share ad revenue?  
Banks to save billions via higher cap on debit fees