Chase Helps More Than Two Million Customers Avoid Overdraft Service Fees

Rhea-AI Summary

Chase, part of JPMorgan Chase & Co., has enhanced its checking account features to help over two million customers save on overdraft fees. Key updates include expanding the overdraft cushion to $50, eliminating the Returned Item Fee, and allowing customers more time to rectify overdrafts. Additionally, early direct deposit will enable clients to access funds up to two business days earlier. These enhancements are aimed at improving customer financial health and avoiding late fees on essential bills.

Positive

• Over 2 million customers saved an average of $60 on fees.
• Expanded overdraft cushion to $50 enhances customer flexibility.
• Elimination of the Returned Item Fee adds value to customer accounts.
• Introduction of early direct deposit improves customer cash flow.

Negative

• None.

New enhancements continue the bank’s efforts over the last decade to give customers more access and value

NEW YORK--(BUSINESS WIRE)-- Chase has helped more than two million customers save on overdraft service fees through new enhancements to checking accounts that give them more flexibility when they are just a little short on any given day, the bank announced today.

Earlier this year, Chase made several new enhancements to checking accounts:

• Expanding the overdraft cushion to $50. Customers pay no overdraft service fees when their account is overdrawn by $50 or less at the end of the business day. Overdraft service fees only begin with the transactions that overdraw the account by more than $50 at the end of the business day.
• Eliminating the Returned Item Fee. Customers pay no fee if Chase doesn’t pay a check or electronic payment because the customer doesn’t have enough money in their account.

Continuing with the enhancements made this year, in 2022 the bank will provide more ways for consumers to avoid overdraft fees by enhancing its services to include:

• Providing a day to catch up. Customers will have until the end of the next business day to bring their balance back to $50 overdrawn or less to avoid overdraft service fees from the previous day.
• Providing customers early direct deposit. Customers will be able to use their direct-deposited payroll up to two business days early.

These continue the enhancements Chase has made over the last decade, including rolling out Chase Secure Banking, a no-overdraft service fee bank account, eliminating additional fees for accounts that are continuously overdrawn, and processing customer’s debits in the same order they see on Chase.com and the Chase Mobile app.

Increasing the cushion to $50 from $5 has helped many Chase customers who didn’t expect a check or electronic payment to post, or just don’t have enough money in their checking account.

Customers value access to overdraft services so that they can avoid late fees when making payments on important bills like utilities and rent, avoid negative impacts to their credit score, and can continue making every day purchases like groceries with debit card coverage. And now with the $50 cushion, they can continue to have access to the service without incurring overdraft service fees as long as their account isn’t more than $50 overdrawn at the end of the business day.

“We work to make our products better for customers every day. These changes have already provided the extra support to more than two million customers who have avoided on average $60 in fees waiting for their paycheck to hit or are just a little short in funds that day,” said Jennifer Roberts, CEO of Consumer Banking at Chase.”

“We know that customers incur late fees on important bills. With overdraft, we help our customers avoid late fees and potential negative impacts to their credit score, and with debit card coverage customers can continue making purchases with their debit card.”

Chase customers can avoid or reduce overdraft service fees by:

• Signing up for Secure Banking, a low-cost account that has no overdraft fees.
• Signing up for Overdraft Protection, which links a Chase savings account as backup to a Chase checking account, so we can transfer the exact amount needed to cover an overdraft transaction.
• Choosing not to opt-in to Chase Debit Card Coverage. Without this service, a point of sale debit purchase would be declined if there’s not enough money in the account, and there would be no fee.

These new enhancements build on Chase’s ongoing commitment to improve customers’ financial health in person and online. From more than 100 Community Managers working in new Chase Community Centers and branches, to new tools and content on chase.com/financialgoals, Chase provides the education to help consumers manage their budget, grow savings and build credit.

Chase continues to look for ways to help customers manage their money. To learn more or check for updates, please visit: chase.com/overdraft

View source version on businesswire.com: https://www.businesswire.com/news/home/20211208005675/en/

Media contact

Elizabeth Seymour

elizabeth.c.seymour@jpmorgan.com

Source: JPMorgan Chase & Co.

FAQ

What new features has Chase introduced for checking accounts in 2022?

Chase has introduced enhancements including an expanded overdraft cushion to $50, elimination of the Returned Item Fee, and early direct deposit.

How does the expanded overdraft cushion benefit customers?

The expanded overdraft cushion allows customers to avoid fees when their account is overdrawn by $50 or less at the end of the business day.

Which bank is associated with the ticker symbol JPM?

The ticker symbol JPM is associated with JPMorgan Chase & Co.

How many customers have benefited from Chase's overdraft enhancements?

More than two million customers have benefited from the new overdraft enhancements.

What is the purpose of the changes made by Chase regarding overdraft fees?

Chase aims to improve customers' financial health and help them avoid late fees on important bills.