Texas Border Business
Automatic feature “rewinds” overdrafts when a covering direct deposit is received the next morning; Bank also eliminates overdraft fees for transactions of $5 or less
San Francisco, November 14, 2017 – Wells Fargo & Company (NYSE: WFC) announced today that it has introduced a new feature that will automatically “rewind” overdrafts that are assessed on customers’ accounts at a vulnerable time – specifically the day before their payday direct deposit is received, when their account balances may be low. With the new “Overdraft Rewind” feature, the bank will not charge overdraft or insufficient funds fees if a covering direct deposit is received the morning after their account is overdrawn. Customers do not need to take any action to receive the new benefit, automatically providing a better banking experience for millions of customers nationwide.
“We’re always looking for new and better ways to help our customers manage their accounts, and many customers have told us that they are frustrated by unexpected overdrafts the day before their next paycheck is direct deposited into their account,” said Ed Kadletz, head of Wells Fargo’s Deposit Products Group. “By looking back at a customer’s prior-day transactions when a direct deposit is received by 9 a.m. local time, we’re now able to effectively ‘rewind’ any overdrafts from the previous business day that are covered by that deposit, helping our customers to avoid overdraft fees and bridge the occasional gap between paychecks.”
Wells Fargo also announced today that it will no longer charge overdraft fees for any transaction of $5 or less, further helping customers avoid unexpected fees when their account balances are low. This new per-transaction threshold complements the bank’s existing policy of not charging an overdraft fee if a customer’s available balance and ending account balance is overdrawn by $5 or less and no items are returned for non-sufficient funds at the end of nightly processing. It is intended to help customers avoid additional overdraft fees for small transactions conducted after an account is initially overdrawn.
In June, Wells Fargo also introduced an alert that will automatically notify its Online Banking customers by email if their account balances drop to zero or less. The automatic alert, which customers can choose not to receive, expands on the wide variety of optional text and email alerts Wells Fargo has offered for a number of years. On average, Wells Fargo sends out more than 1 million zero and low-balance alerts during the day, giving its 21 million Online Banking customers a chance to avoid an overdraft fee by making a deposit or transferring funds from another account.
The recently introduced overdraft improvements support Wells Fargo’s commitment to help customers improve their financial health – a challenge for many Americans today. Research shows that 57 percent of Americans are struggling financially1, and 44 percent say they would not be able to cover a $400 emergency expense without selling something or borrowing money2. To help more Americans feel more stable and prepared for life’s opportunities and challenges, Wells Fargo is providing a growing set of services that make it easier for customers to know where they stand, and make the right financial decisions based on their specific needs and goals.
