Capital One says it is eliminating all overdraft fees for retail banking customers.
It is the largest U.S. bank yet to end the industry practice of charging customers a hefty fee, typically $25 to $35 in each instance, for allowing transactions that exceed a customer's balance, according to the McLean, Virginia-based lender. The move will cost the bank an estimated $150 million in lost revenue per year, according to a company spokesperson.
"We will completely eliminate overdraft and non-suļ¬cient funds (NSF) fees for all Capital One consumer bank customers," said CEO Rich Fairbank to the bank's employees Wednesday in a memo, calling it a "first for major banks in the U.S."
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