Consumer Payment Card News

Bank Robbery

Big banks are making big increases in overdraft fees for debit cards and checking accounts. The increases come amidst the growing cries to reign in the fees as well as limit bank policies such as hitting customers for each transaction on a debit card and “big check first” policies. A new survey has found that big banks charged a median price of $35 per overdraft vs. all financial institutions with a median OD fee of $26. Overall, the national median for overdraft fees on consumer checking accounts, debit cards and ATMs increased 4% to $26 per incident in 2009 from $25 per incident in 2008. The South led all US regions with a median charge per overdraft of $29.00 vs. $25.00 elsewhere. The Moebs Services research also shows 35% of all financial institutions allow consumers to overdraw their accounts at an ATM or with a debit card for which a median charge of $26 is assessed and less than 20% of all financial institutions pay overdrawn checks in the order from large to small.

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