Bank of America has announced that they will end overdraft fees on debit purchases. It sounds like a good thing for consumers and it is, until you wait for the other shoe to drop. Where will B of A recoup the half billion dollars it will lose from this new proposal? When the company augmented their policy to waive the overdraft fee if the account holder was less than $10 in debt, they lost $160 million.

For the consumer, this is great! If you don’t have the money then you shouldn’t be allowed to make the purchase. If you don’t have enough cash and then try to make a purchase you have to put something back. Bounce a check and a business may no longer accept checks from you. Not enough in your bank account and you can’t make the purchase. Seems logical and sounds like a great concept. Yet there is still a nagging voice asking what will Bank of America get in return? If many people opt out of overdraft fees then the bank will lose money. Who is going to pay? What will the consumer have to give up or pay for in return for B of A’s largesse?