People walking by a JPMorgan Chase bank branch in New York.
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The three largest American retail banks saw a 25% decrease in overdraft revenue last year due to pressure from regulators to limit fees and the introduction of new ways for customers to avoid penalties.
JPMorgan Chase, Wells Fargo, and Bank of America reported a combined $2.2 billion in overdraft fees in 2023, which is approximately $700 million less than the previous year, according to regulatory filings.
Overdraft fees occur when a customer tries to spend more than the balance in their checking accounts. At around $35 per transaction at many banks, these fees have been a profitable source of revenue for the industry, generating $280 billion since 2000, according to the Consumer Financial Protection Bureau.
The industry is preparing for a potential battle over overdraft fees following the Consumer Financial Protection Bureau’s proposal in January to limit charges to as little as $3 per transaction. Banks are concerned…
2024-02-09 12:36:28
Post from www.cnbc.com