In a move that matches the spirit of the Card Act, which prohibits banks from charging too many fees on their card products but doesn't specifically prohibit overdraft fees, Bank of America is dropping the $39-a-day fee it has charged some debit card customers who inadvertently overdraw on their checking account. Beginning this summer, the bank will only authorize single debit card transactions at the point of sale if a customer has enough money in their account at the time.
Customers will still have the choice to link their checking account to another account through overdraft protection to cover inadvertent over-withdrawals.
"Our customers have been clear that they want to know if a purchase is going to overdraw their account," said Susan Faulkner, deposits and card product executive. "We understand that the environment has changed, and we are changing with it," added Faulkner. "We will continue to make changes to our products, services and solutions that deliver more value to our customers by providing the clarity, control and choice they need to better manage their everyday finances."
Bank of America will also begin offering online banking and checking account customers electronic alerts when accounts reach a low balance or a customer overdraws this summer.