Some consumers who have long been clamoring for an end to debit card overdraft fees are about to get their wish, as Bank of America announced on Tuesday that it was doing away with the fees.
Beginning this summer, Bank of America debit card holders will only be authorized to make single debit card transactions if they have enough available money in their account at that time. If funding is not available, the transaction will be denied, instead of potentially incurring a fee for overdrafting their account that can range from $30-$35.
“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.”Our solution is simple, clear and helps customers control their finances by reducing the possibility of over-extending themselves at the point of sale with a debit card.”
Customers will still be able to link their checking account to a savings account that can have money deducted from it if the initial account is overdrawn. ATM transactions will also be simplified and notify the card holder if the transaction puts them at risk of overdrafting their account.