CHARLOTTE, N.C. ( TheStreet) -- Bank of America ( BAC) is expected Wednesday to eliminate overdraft fees on purchases made with debit cards.

Customers, however, will be denied from making purchases if they have insufficient funds in their accounts.

ATM customers can get their money but only after they agree to pay the $35 overdraft fee.

The policy begins for new customers on June 19. For existing debit-card holders the plans take effect in August.

Bank of America's move is an effort to get in ahead of new banking regulations that begin July 1 that will prohibit banks from charging these fees without first gaining permission from the customer.

Bank of America's action is expected to cost the bank millions of dollars in revenue, the Wall Street Journal reports. A spokeswoman declined to provide specifics.

-- Reported by Joseph Woelfel in New York.

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