The debate over overdraft programs offered by financial institutions has mainly revolved around the issue of price, but volume is another, more important, factor involved that often gets overlooked.

The debate has been fueled by reports of the $35 cup of coffee and has targeted institutions that charge what are deemed as outrageous fees to unsuspecting consumers. Financial institutions have defended their programs by saying it is service that many consumers enjoy using as a cost benefit to having their checks or charges returned. However, data collected by Moebs Service, an economic research firm and overdraft program provider, showed that volume plays a more important role than price in dictating overall overdraft fee income.

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