Use the following table to help explain to a member why that member got an NSF or Automated Non-Return Fee.
 
Checks
Debit Card Transactions
(TIP: Be sure to pay attention to whether you fee based on available or current balance. This is configured via Tool #558 NSF/OD Transfer Configuration.)
Tuesday: You write a check to buy something Tuesday: You use your debit card to buy something
We hold the money
↓ ↓
Wednesday: You write some other checks
We don’t know about them – you keep track		 Wednesday: You buy more with your debit card
We keep track by holding the money
↓ ↓
Thursday: The check from Tuesday comes in Thursday: The item from Tuesday comes in
↓ ↓
We check your available balance – you don’t have enough money available (meaning not committed to other things already) in order to post the item
We charge an NSF (or ANR) fee because of what your available balance was at the time the check came in		 We check your balance to see if you don’t have enough money available (meaning not committed to other things already) in order to post the item
We charge an NSF (or ANR) fee because of what your available balance (or current balance, depending on your configuration - see note at top of this section) was at the time the item came in
↓ ↓
Other checks from Wednesday come in
If funds are not available (either because you spent too much or because the fee we charged you on Thursday was more than you had left), another NSF or ANR fee will be charged		 Other purchases from Wednesday come in
 If funds are not available (either because you spent too much via another channel – an ACH withdrawal or a check clearing – or because the fee we charged you on Thursday was more than you had left), another NSF or ANR fee will be charged
   

Comparing Oranges to Tangerines


 
Checks Debit Card Transactions
  • We didn't hold the money (we didn't know about the checks you wrote)
  • We held the money (the merchant told us you were spending the money)
  • We don’t know you wrote another check on Wednesday (you have to keep track)
  • We know you spent more money on Wednesday (the debit card purchases, anyway)
  • We might clear things on Wednesday because we don’t know about the one from Tuesday yet
  • We won’t clear things that dip into the money you already committed because we know about the ones from Tuesday and Wednesday
  • NOTE: If your credit union force-posts ACH items and even checks (even with Courtesy Pay and ODP programs and fees), this can contribute to the problem since it may use funds that were held for another reason.
  • Other items might come in between the time the checks is written and when it clears (typically called “playing the float”)
  • Other items might come in, but fewer of them, because at least for debit card, ATM, online banking, and similar situations, we check for your prior commitments before we say yes
 

Additional Notes

If you want to go a little further, below are some reasons why members may see multiple holds for the same merchant or have a posting without a hold on their account:
  • Pre-approved transactions by another method; Visa or MasterCard. Visa and MasterCard have agreements with merchants and they can approve transactions up to a certain dollar amount without being authorized by the Vendor or the Financial Institution. CU*Answers would never see an authorization to place the hold on the member account. We would only receive the posting and regardless of the account balance, we have to post.
  • Some merchants, for example car rentals and hotels, can send an authorization. For example, car rentals and hotels can send an authorization for a certain amount and then when the actual posting comes through, it could be higher or lower. They can send in daily authorization for the same amount for a few days. The member may see the same dollar and merchant on different days. This depends on the member's reservations.