Bank’s fee change makes student spending less stressful
Posted on 3/10/2010
Topics: Financial Aid and Money Matters
International students coming to the U.S. might have an easier time budgeting and keeping track of their finances following a major bank's decision to eliminate one of its fees.
Bank of America, one of the largest banks in the U.S., will eliminate overdraft fees on purchases made with debit accounts, the New York Times reported today. Overdraft fees happen when a debit cardholder purchases something for which they don't have enough money in their account. The bank covers the purchase, but often charges the customer as much as $35 for doing so.
By doing away with this charge, Bank of America makes it easier for cash-strapped students to get by. If a student tries to buy a sandwich and doesn't have the money in their debit account, the purchase will be declined, instead of putting the student even further behind by adding an overdraft fee to the amount they don't have.
Susan Faulkner, a deposit and card product executive for the bank, said the change was intended to help build trust among customers.
"What our customers kept telling me is 'just don't let me spend money that I don't have,'" she told the newspaper.
The U.S. Census Bureau estimates there are 525 million debit cards in use nationwide.
Bank of America, one of the largest banks in the U.S., will eliminate overdraft fees on purchases made with debit accounts, the New York Times reported today. Overdraft fees happen when a debit cardholder purchases something for which they don't have enough money in their account. The bank covers the purchase, but often charges the customer as much as $35 for doing so.
By doing away with this charge, Bank of America makes it easier for cash-strapped students to get by. If a student tries to buy a sandwich and doesn't have the money in their debit account, the purchase will be declined, instead of putting the student even further behind by adding an overdraft fee to the amount they don't have.
Susan Faulkner, a deposit and card product executive for the bank, said the change was intended to help build trust among customers.
"What our customers kept telling me is 'just don't let me spend money that I don't have,'" she told the newspaper.
The U.S. Census Bureau estimates there are 525 million debit cards in use nationwide.
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