Bank of America officials said on Tuesday that it was doing away with overdraft fees on purchases made with debit cards -- a new policy call that could cost the bank tens of millions a year in revenue and put pressure on other banks to do the same.
The move comes as a new federal rule will soon require banks to get permission to provide certain overdraft services.
Starting this summer, Bank of America customers who try to make purchases with their debit cards without enough money in their checking accounts will simply be declined.
Debit purchases account for roughly 60 percent of overdrafts at Bank of America, the nation’s largest issuer of debit cards, according to a nytimes.com
report.