Bank of America made a splash yesterday announcing the end of overdraft charges on debit card transactions.
Later this year, your card will be declined if you don't have enough money. Many have wondered why credit card companies have no trouble declining transactions when you hit your limit, but debit card purchases always sail through (at a high cost).
You can still opt-in to overdraft protection if you like it. Expect plenty of reminders. Starting in July, banks will be required to get your permission before signing you up for overdraft protection.
These changes only apply to debit card use: purchases at ATM transactions. Other payments (checks and ACH payments to your mortgage or insurance company) may continue to cause overdrafts.
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