The timing of such moves and more details will be shared with both banks' customers soon.
The bank said it will eliminate overdraft fees for customers when they overdraw their accounts by $5 or less and will charge no more than four overdraft fees per day.
In a key move, Wells Fargo and Wachovia customers also will be able to opt out of overdraft coverage, meaning customers can specify that they don’t want their transactions authorized into overdraft if funds aren’t available to cover the transaction.
The ability to cancel overdraft coverage has been a big concern with the growing use of debit cards, which can quickly turn a morning cup of coffee at Starbucks (NASDAQ: SBUX) into a $30 purchase.
Wells Fargo’s moves follow similar changes occurring at Bank of America Corp. (NYSE: BAC) and Chase (NYSE: JPM).
The nation’s largest bank are under growing political pressure to rein in costly fees and practices.
“Most of our customers don’t need overdraft coverage in any given month, but for those that do we hope these changes, along with the tools we already provide, will help them minimize overdraft fees,” said Carrie Tolstedt, senior executive vice president and head of community banking at Wells Fargo, (NYSE: WFC) which purchased Wachovia late last year.