As you may have heard there are several new credit card regulations. One such regulation prohibits banks from charging over draft fees unless you “opt in.”

If you chose not to “opt in” to the service your credit card or debit card transactions will be declined if they exceed your limit or would over draw your bank account. However you cannot be charged an over draft fees.

Before this change banks allowed most customers to over draw their accounts or exceed their credit limit and then charge fees for exceeding the limit.

Banks will no longer be able to do this UNLESS you tell them it is okay to allow you to over draft your account and to charge you over draft fees. Some banks are currently undertaking marketing campaigns to convince customers to opt into over draft fees.

Banks make a lot of profit on over draft fees and they do not want to lose them.

It’s up to you to opt in or not but it will cost you if you do. In my humble opinion, do not opt in save your money and do not pay banks extra fees.