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Customer Complaint re Offline Overdraft

Answered by: 
John Burnett

Question: 
If our ATMs are in offline mode (ATM is able to perform transactions but is not communicating with the host system), the customer's opt-in selection is not available to the ATM. The customer's withdrawal transaction is completed using an offline transaction limit assigned to the card. This means that a transaction could be completed even if there are insufficient funds in the account. If the customer did not opt-in and does not have enough money in the account, the transaction will be completed anyway. We don't charge the OD fee if the transaction posts and actually results in an overdraft, but we essentially have not honored the customer's opt-in choice. How is everyone else handling this when a customer complains he was allowed to overdraw?
Answer: 

One response might be "Didn't you look at your check register before using the ATM?" [As tempting as it might be, I'd choose carefully the customers I give that answer to, and make sure my resume was current first!]

A better response might be, "In the interests of customer service, we attempt to provide ATM access even when our online links are down. We may in such cases authorize withdrawal requests under a stand-in method that could result in an occasional customer overdraft. Of course, we don't penalize our customers when that happens, but we do expect that the overdraft will be resolved promptly, nonetheless."

First published on BankersOnline.com 1/10/11

First published on 01/10/2011

Filed under: 
Technology
Filed under technology as: 
ATM
IT

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