Recently, many large banks of the nation, like Wells Fargo, JPMorgan Chase and Bank of America, mulled to stop charging consumers fees of $25 or more when they overdraw their accounts by small dollar amounts. The move comes after the banks faced widespread criticism for raising fees in the middle of a ruthless recession. Furthermore, the banks also plan to decrease the number of times customers can get hit with overdraft fees in a single day.

With the new policy coming to scene, it seems the big banks will pressurize smaller regional banks to lower their fees.

As per the industry analysts, it is for the first time in decades that the nation’s large banks have taken steps to reduce overdraft fees, which generates tens of billions of dollars in revenue each year.

Wells Fargo shall soon permit existing and future customers to move out of overdraft coverage, which indicates that customers would be able to turn off their ability to spend once their accounts hit zero. And if they don’t have enough money in their accounts to cover the total, then their purchases would be automatically rejected at the cash register.

A spokeswoman for the bank said that the changes would be applied to all of Wells Fargo’s account holders.

Apart from this, the banks are also trying to limit fees on small purchases consumers may have kept away from had they known they would be charged an overdraft fee. For example, overdraft fees for all accounts overdrawn by $5 or less would be cancelled by both Wells Fargo and JPMorgan Chase.

With this, it becomes quite rare that someone will end up paying $35 for buying a bus ticket or a cup of coffee.

“And the banks are moving to address longstanding complaints that they process transactions to maximize their overdraft revenue. At the end of each day, banks typically lump together transactions and process large transactions first, which empties accounts faster and can result in multiple overdraft fees on smaller purchases,” said a source.