Nationally, the average American household with a bank or credit union checking account pays $368.51 each year in overdraft protection (ODP) or non-sufficient funds (NSF) fees.
In states where payday loans are available, the average consumer pays $240.79 per year in ODP and NSF fees–$127.72 less than the national average. On the other hand, in states where payday loans have been eliminated, checking account holders pay, on average, $541.65 each year—that’s $300.86 more than their counterparts who live in states with payday loans.
A customer typically pays $15-$17 per $100 for a payday advance. Comparatively, the average ODP/NSF fee is $27, regardless of the amount of the overdraft. Many informed consumers choose to take out a payday loan rather than overdraw their checking account. This explains why, in states where payday loans are an option, consumers pay less.
