Bank of America to Drop Debit Card Overdraft Fees
Bank of America yesterday
announced that beginning this summer it will decline debit card
purchases at the point of sale when customers do not have enough money
in their accounts to cover the transaction. The bank said it will only
allow such transactions if a customer has signed up for an overdraft
protection plan that links their card to a savings account or credit
card.
The move, which effectively ends the bank's $35 overdraft fee for debit
card purchases, goes a step farther than the new rules that take effect
July 1. Those rules prohibit banks from charging overdraft fees on debit
card purchases or ATM withdrawals unless customers opt in to such
services.
In related news, ABA will hold a telephone briefing/Webcast from 2 to 4
p.m. EST today on the new overdraft protection rules and their
significant implementation challenges. Speakers will include Joe Blount,
SVP of payment strategies at BB&T, Alexandria, Va.; Ann Lee, managing
partner of The Lee Group, a Houston marketing communications firm; ABA
Overdraft Protection Task Force member Rheo Broulliard, president and
CEO of SI Bancorp, a $843 million mutual holding company in Willimantic,
Conn.; and several ABA compliance and communications experts.
Read more and register.
Read more about the new rules.
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