Disclosing "posting order" when explaining when OD fees may be charged

Answered by:

Question:

If we elect to update our disclosures on the circumstances that may trigger overdraft charges, do we have to disclose the order in which we post debit and credit items to deposit accounts?

Answer:

The order in which you post debits and credits (or credits and debits if you prefer) can affect which debit items will take an account to a negative balance. But explaining the order in which you post items or your hierarchy of
payment (which items are “must pay” items and which may be returned to avoid an overdraft) can be risky when you consider the fact that the bank has the option to select debit items to be returned from any of those posting the previous
banking day that are not “must pay.” Unless state law requires the bank to disclose its order of posting items, I suggest that you not disclose it unless the bank feels that it’s a key part of helping customers understand when the bank
charges OD and/or NSF fees.