The banking industry continues to brace for a new rule, which will take effect July 1, requiring customers to opt-in to overdraft (overdraft news) protection programs. These programs of course have been a cash cow for the industry; banks generated about $20 billion in such fees on debit purchases and ATM transactions and $12 billion on checks and recurring bills. But the largest chunk came from a small group, and the press was negative, portraying the "service" as a sneaky way to make money.

Congress (Congress news) certainly got riled up. Bank of America's (BAC) response was a big surprise: It will do away with overdraft fees altogether on debit card transactions. It's unclear how much revenue the bank will be foregoing. It hopes to make it up via good PR (PR news) and an enhanced standing with consumers. You have to wonder if the rules requiring the opt-in posed any technical challenges. The costs of imposing such a system may have factored into the decision. 

For more:
- here's a New York Times article

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