The bank issued a press release Tuesday stating that it cancelled the fee in response to "customer concerns."
"We have listened to our customers very closely over the last few weeks and recognize their concern with our proposed debit usage fee," said David Darnell, co-chief operating officer in a prepared statement. "Our customers' voices are most important to us. As a result, we are not currently charging the fee and will not be moving forward with any additional plans to do so."
Other banks, including JPMorgan Chase (Stock Quote: JPM), Wells Fargo (Stock Quote: WFC), Regions Financial (Stock Quote: RF) and SunTrust Bank (Stock Quote: STI) have also backed away from similar plans to charge fees for debit card use. The move was a response to new legislation known as the Durbin Amendment that caps the fees banks can charge retailers on debit card transactions.
A recent poll of TheStreet's readers showed the fee to be hugely unpopular.
The bank's timing in announcing the fee proved especially poor, since it more or less coincided with the start of the Occupy Wall Street protests.