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At first glance, banks’ practices seem reasonable enough: Overdraw your account, and the bank will cover the transaction — for a fee. The problem is, most banks don’t ask consumers if they want their transactions automatically paid. In recent years, as banks realized how lucrative these fees can be, they’ve made it easier for consumers to overdraw their accounts, to the tune of $36.7 billion in revenue last year, USA TODAY research has found.
Banks have done this by covering debit card transactions as small as $1 and charging a fee as high as $35. Some also charge fees before consumers overdraw by deducting a purchase when it’s made, instead of when it clears. And they’ve processed transactions from highest to lowest dollar amount — which empties consumers’ accounts quicker and triggers more overdrafts.
