Chase Announces More Features to Help Customers Avoid Overdraft Fees Chase Announces More Features to Help Customers Avoid Overdraft Fees
A Chase Bank entrance

Chase Announces More Features to Help Customers Avoid Overdraft Fees

Today Chase announced some updates they’re making to their consumer checking accounts that could have a positive impact. Earlier this year, the bank adjusted their overdraft policy, only charging a fee if a customer was overdrawn by more than $50 at the end of a business day. Additionally, Chase also eliminated its returned item fee. Now, the company has announced further changes that they say will help more than 2 million customers avoid incurring overdraft fees.

First, the bank will now grant customers a grace period before an overdraft fee is assessed. Accountholders will have until the end of the following business day to bring their balance up to at least -$50 ($50 overdrawn) in order to avoid a fee. Additionally, Chase notes that custmers that use direct-deposit for their payroll checks will now be able to access their funds up to two business days early.

Chase’s moves to ease overdraft fees comes as the practice has gained continued scrutiny. As CNBC reports, the Consumer Financial Protection Bureau recently announced that it will be cracking down on banks charging such fees. According to the Bureau, banks earned more than $15 billion from overdraft fees alone in 2019.

Meanwhile, digital banks and FinTechs have also provided competition for brick-and-mortar banks, with the main draw being the lack of fees that many of these services charge. In June of this year, Ally discountinued the overdraft fees, with Capital One making a similar move this week. Elsewhere, challenger banks such as Chime and many others already allow customers to access direct deposit funds early and several others offer features that grant consumers some flexibility when it comes to overdrafts and advances.

In a statement regarding Chase’s updated policies, the company’s CEO of consumer banking Jennifer Roberts said, “We work to make our products better for customers every day. These changes have already provided the extra support to more than two million customers who have avoided on average $60 in fees waiting for their paycheck to hit or are just a little short in funds that day.” Roberts added, “We know that customers incur late fees on important bills. With overdraft, we help our customers avoid late fees and potential negative impacts to their credit score, and with debit card coverage customers can continue making purchases with their debit card.”

Overall, while these may be small changes and still find Chase lagging behind some other banking options, they still mark a positive step forward for consumers. Although it will likely be some time before we see overdraft fees completely eliminated and replaced with a better option, it looks as though pressures put upon these major banks are moving them forward. Hopefully this momentum will continue, resulting is positive finanical changes for many Americans.

The "Email" field is empty, you must enter some text to proceed.The text you entered in the "Email" field appears to be invalid, please edit it and try again
Get the Latest News Delivered to Your Inbox

FedEx Announces Winners of 11th Annual 2023 Small Business Grant Contest

Nearly three months after the entry period ended, FedEx has announced the winners of its 11th annual Small Business Grant Content. This year's event saw more than $300,000 in funds going to a variety of small businesses across the nation. Last month, the company revealed 100 finalists, with that list now being narrowed down to just 10 winners. This year's grand prize winners included KindVR, The Cupcake Collection, Up In...
H-E-B and Central Market  credit cards

Imprint Launches Credit Cards from H-E-B and Central Market 

The FinTech Imprint is partnering with the popular Texas-based grocery chain H-E-B for a pair of new rewards credit cards. This week saw the launch of the H-E-B Visa Signature Credit Card as well as the Central Market Visa Signature Credit Card. With these two (nearly identical) options, customers will be able to earn rewards on groceries and beyond. First, both versions of the card earn up to 5% back on select...
Summer app

Student Loan Benefit FinTech Summer Raises $6 Million

For years, student debt has been one of the most talked about financial topics. What's more, while the debt itself has become a major part of many Americans' lives, discussion of student loans has become political due to efforts to forgive certain loan repayments. However, while we wait for resolution on that front, a FinTech that brings student debt benefit solutions to employers and consumers has raised a new round...
Choice Privileges Select Card

Choice Hotels, Wells Fargo Debut Choice Privileges Select Card

With spring well underway and the summer travel season now just around the corner, Choice Hotels and Wells Fargo have unveiled their latest co-branded credit card offering. Today, the two companies announced the Choice Privileges Select Mastercard. Carrying an annual fee of $95, this card will serve as the premium option in the hotel brand's new lineup. Looking at the Choice Privileges Select, it offers a mix of rewards categories....
Melissa Urban holding a Ness card

Health and Wellness Rewards Card Ness Partners with Whole30

In recent years, several unique rewards cards have come to market. These include offerings from FinTech startups as well as brands looking to do something special for their loyal fans. On that note, a recently-announced rewards credit card offering is now working with a popular brand to introduce new benefits for customers. This week, the Ness Card (which is issued by The Bank of Missouri) unveiled a new partnership with...