Ledger balance vs. available balance

Answered by:

Question:

Do you know how your automated overdraft program set up? Which balance is being used to determine the paying of NSF items and the fees charged?

Answer:

Working with vendor programs to remove the manual review of NSF items has saved time and helped to remove most of the subjectivity out of the process. However, it comes with risks, for example:

Not having a clear understanding of how payments ae processed and/or returned based off the balance in the account and the balance used when the transaction was authorized.
Our own employees not understanding the process and providing misinformation to the customer.
Brochures using generic language that doesn’t actually match the software process.

-------------------------
Learn more about Kimberly Boatwright’s, Overdraft Programs and Their Risk to Your Financial Institution
webinar.