Chase Customers Can No Longer Use Credit Card for Overdraft Protection
Yesterday, Chase announced that customers will no longer be able to use a Chase credit card as overdraft protection for their personal checking accounts beginning on August 20th. Only Chase savings accounts will be capable of providing backup funding.
After this deadline, if a Chase customer does not have a savings account linked to their checking account and they don’t have enough money in the account to cover a purchase, their transaction could be declined, and they might incur insufficient funds and returned item fees.
Chase also announced that it will no longer charge a $10 fee to transfer money from savings to checking.
This change may not affect many Chase account holders, as the bank said most customers already have their checking and savings accounts linked. In fact, in the past six months, Chase says only 1.5% of overdrafts are going to credit cards.
Other major banks, including Bank of America and PNC, will still allow customers to use their credit card as a backup overdraft method.
Earlier this year, Chase made another change when it told customers that it would not automatically correct errors in deposit amounts, if they were within $10 of the correct sum. According to revisions to its deposit account agreement, customers would need to flag these problems.