Discover has introduced Balance+, a feature for its Cashback Debit Checking account that provides customers with fee-free overdraft coverage on debit card transactions. This move addresses the common issue of overdraft fees, offering relief to those living paycheck-to-paycheck.
Balance+ allows account holders to overdraw their accounts by up to $200 without incurring fees.
To qualify for Balance+, an account must be in good standing and have a positive balance. Additionally, account holders need to receive at least one direct deposit of $200 or more per month for the past two months. This feature aims to help customers manage their finances more easily and avoid stress when covering everyday purchases.
Balance+ is an addition to Discover’s existing overdraft protection services, which include fee-free Overdraft Protection. This service automatically transfers money from a linked Discover account to cover transactions when an account is overdrawn. While Balance+ covers debit card purchase overdrafts, Overdraft Protection covers checks, online bill payments, and ACH transfers initiated at another bank. Customers can enroll in both services to ensure comprehensive coverage for various transaction types.
“With Balance+, we are giving our customers peace of mind that Discover has their back when they use their debit card for their everyday necessities,” said Ram Subramanian, vice president, and chief marketing officer of Discover Bank. “This is a natural extension of our commitment to offering the most rewarding banking experience without having to worry if you make a mistake.”
Discover has also made several enhancements to its Cashback Debit service, aiming to provide a better customer experience. These improvements include:
- Add Cash: Customers can now add money to their accounts at any Walmart location in the U.S. quickly and without fees.
- Direct Deposit Switch: This feature allows customers to set up or switch their payroll direct deposit instructions securely through the Discover mobile app or online portal, enabling access to Early Pay, which provides funds up to two days earlier.
- Secure Account Linking: Customers can seamlessly link external accounts to their Discover Bank account.
These new features build on the existing benefits of Cashback Debit, which include 1% cash back on up to $3,000 in debit card purchases each month, no fees for monthly maintenance, insufficient funds, or overdraft, fraud protection on debit card purchases, and access to over 60,000 fee-free ATMs across the U.S.
“Cashback Debit offers consumers a wide range of benefits and is one of the only checking accounts to offer cash back rewards,” added Subramanian. “We’re excited to continue building on this product to provide straightforward and meaningful benefits that put the consumer in control of their finances.
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This article, "Discover Introduces Balance+: Fee-Free Overdraft Protection" was first published on Small Business Trends
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