Going forward, when Capital One customers overdraft their checking accounts, the purchase will simply be declined. This will not result in customers incurring any penalties.
Could other banks implement comparable measures?
Just about every major bank has overdraft fees. As a matter of fact, banks are known to bring in massive amounts to the tune of millions per year, just from overdraft fees.
Upon the announcement from Capital One, countless people praised the decision on social media. Certain folks even opined that other banks like Chase, Bank of America, etc., should implement the same practice as Capital One.
Ultimately, time will tell what comes from this shift beginning next year. Removing overdraft fees could make Capital One a more appealing option for people when they’re choosing banks.
Therefore, this could open the door to other top banks making similar moves. If nothing else, additional banks could potentially determine removing overdraft fees is a smart, long-term business decision.
