In the immediate future, we will have an unelected, unaccountable bureaucrat deem that a paid NSF fee
is no longer allowed (and who knows if the unpaid NSF fee
will be permitted).
It's the Merchant's choice as to how to handle the situation, but the bottom line is that the Merchant has just avoided a potential NSF fee
or worse - a fraudulent transaction.”
First, banks acknowledge that high-low sequencing offers increased NSF fee
revenue and that a change in the existing rule would diminish their revenue stream.
Stephanie Sanford, area manager of Peoples Bank, said, "They avoid a $30 NSF fee
, but the problem is they keep doing it."
I usually also create an "Other Charge" Item called "NSF Fee
" and charge my customer for any service charge I received from my bank.
If a customer does not have sufficient funds in the account, transactions are declined or returned for non-sufficient funds without payment; however, KeyBank does not charge an overdraft or NSF fee
. Customers may also participate in the bank's Relationship Rewards program that offers discounts for a $40 annual fee.
Same goes for those that depend upon NSF fee
income to keep the lights on, as well as those that don't understand how social media differs from direct mail advertising.
Does dropping your NSF fee
a buck or two below the local community bank really allow you to claim ethical superiority?
While they have little control over their levels of NSF fee
income, a noninterest income staple, they say boosting interchange income by encouraging the use of debit cards has become a priority.
"This segment of consumers that Raddon defines as having seven or more NSFs in a year accounts for the majority of a credit union's NSF fee
income," Biasella said.
Selected Mid-year 2009 Credit Union Fees Compared to Banking Institutions Share draft checking, Credit cards, NSF Fee
late fee Georgia $25.00 $20.00 Area Banks $30.00 $35.00 Source: NCUA, CUNA and Datatrac Note: Table made from bar graph.
BANKING AND CREDIT NEWS-April 19, 2016-Banks.org blog notes America's banks made over USD11bn from overdraft and NSF fees