Could I Please Have A Checking Account With No Overdraft Fees Ever!

The consumer who asks, “Could I have a checking account with no overdraft fees, ever,” can grow your revenues and not cannibalize any existing overdraft fees!   These consumers explain: 

“I balance my check book and am good at budgeting, but with debit PIN and signature settling differently, my use of the debit card, using online bill pay and other technology today it is easy to have a surprise.  In fact, I understand you at the bank cannot help paying some accounts in to overdraft with a “force-pay” debit even if I opt out, so we are on the same page.’

“But I can’t handle the surprise of expensive overdraft fees. I am glad for you to return all items on my account if I don’t have the funds.  In fact it helps me with spending control. I willing to pay a monthly fee that I can plan and budget, but just assure me I have no surprises, not even a return check NSF fee.  And don’t tell me you are saving merchant return check charges. I have not used a check at a merchant in years.”

They want a “return-all” checking account.  How big is this market segment?  Nearly one quarter of the transaction marketplace and growing fast, made of single mothers (half of all households that make under $50k), working families and Millennials.     The FRB Philadelphia reports that prepaid cards are the fastest growing service used by 20% of banked customers.  Why because they allow spending control and no overdraft fees.

Walmart and others are leveraging the trend with checking accounts with not overdraft fees ever.  But financial institutions don’t offer checking accounts with no overdraft fees ever.  But customers who regularly use your overdraft services want items paid, not returned.  So the customers put themselves in different segments.  So accounts like PaySound drive revenue growth for you, win customers, better serve public policy.