From CNBC:

The three biggest American retail banks, JPMorgan Chase, Wells Fargo, and Bank of America, reported a combined $2.2 billion in overdraft fees in 2023, a $700 million decline from the previous year. Overdraft fees triggered when customers attempt to spend more than their checking account balance have been a lucrative income source for banks, amounting to $280 billion in revenue since 2000.

Regulatory pressure has led banks to create new ways for customers to avoid overdraft penalties, including capping the fees. The Consumer Financial Protection Bureau proposed to limit overdraft charges to as little as $3 per transaction, with critics arguing that the fees exploit struggling Americans. Additionally, pandemic stimulus money and voluntary actions by some banks have contributed to a decline in overdraft revenue.

JPMorgan, Wells Fargo, and Bank of America have all experienced significant declines in overdraft revenue, with Bank of America cutting its fees from $35 to $10 in 2022. Over 70% of overdraft transactions no longer incur fees, and customers can choose accounts that don’t allow the penalties. While JPMorgan’s spokesman stated that their customers continue to want and need access to overdraft protection, Wells Fargo and Bank of America declined to comment.



Read more: JPMorgan Chase, Wells Fargo cut overdraft revenue to $2 billion in 2023