| A person is at the checkout counter paying for a $2 | | | | cards. 72% to 74% would rather their banks decline a |
| soda when he realizes he has insufficient funds on his | | | | $5 to $40 transaction that exceeds their debit cards |
| debit card. Will he pay an extra $30 bounce fee and | | | | funds. |
| save face or turn and walk away? Bounce fees are | | | | But with the billions of dollars banks collect from |
| the charges slapped on customers' faces by their | | | | overdrafts, bounce protection would surely be |
| banks in cases they have exceeded the amount left in | | | | promoted even amidst scrutiny from customers and |
| their debit cards. It is a bit too much to carry for the | | | | advocates. These bounce protection fees, more than |
| customers but as defended by banks, these fees are | | | | courtesy, are only some of the profitable schemes of |
| "courtesy" in tribute to their customers as they know | | | | banking institutions. People are not given any option, or |
| people don't want to get embarrassed at a failed | | | | at least not made clear to them, of a way out of |
| transaction. In 2006 alone, Americans paid an excess | | | | bounce fees. So do consumers still have a choice to |
| of $17 billion for bounce fees for $15.8 billion of | | | | prevent acquiring these excessive charges? |
| overdrafts. | | | | Incurring overdraft is inevitable. However, people can |
| But are excessive bounce fees really worth it? During | | | | avoid succumbing to overpriced bounce fees every |
| this financial struggle, embarrassment is the last of | | | | time they exceed their cards. There's a real overdraft |
| people's priority. Everyone is bounded by the financial | | | | protection for linking credit cards, ATMs and savings |
| crisis and they have realized by now that debt is bad | | | | account in to checking accounts. Annual fees cost $10 |
| and savings are better. Banks think that people need | | | | to $50 plus small, justifiable interest charges for every |
| the protection in exchange for excessive fees. Bounce | | | | overdraft acquired. |
| protection is automatically installed to accounts | | | | Some banks may refuse an account with bad credit |
| especially those who don't really have a true overdraft | | | | or banking history to avail of overdraft protection. In |
| protection. But according to a survey done by Opinion | | | | cases like this, a person may choose to transfer to |
| Research, 82% of 2,023 adults want to have a choice | | | | other accounts that don't include bounce protection or |
| whether bounce protection should be included for their | | | | they may change banks completely. |