MCLEAN, Va. – In an effort to generate revenue, large banks are entering the prepaid debit card market and driving down fees for consumers, USA Today reports. 

National and regional banks that offer prepaid debit cards have generally simplified the fee structures of the cards, offering a low, fixed monthly cost, said Greg McBride, senior financial analyst at Bankrate.com, which released a survey of prepaid debit cards earlier this week.

The Bankrate.com survey revealed that 13% of prepaid debit card issuers, mainly large banks, assess a single monthly fee of between $4.95 and $7.

The rate is lower than most prepaid debit cards, which have a number of fees, including such things as fees for enrollment, ATM withdrawals and balance inquiries — fees that add up quickly.

For example, 63% of issuers charge monthly service fees that range from $3 to $9.95, in addition to add-on charges that can total more than $20 a month for a consumer making just a handful of transactions. 

Increased competition from big banks and credit card issuers, such as Chase and American Express, has led to the low-cost, flat-fee cards. Many issuers are willing to lower fees because prepaid debit card usage can generate income and fill in the gap on existing debit cards, which were affected by the Durbin Amendment.