What is the exact process for notifying customers that exceed the monthly transaction limit on this type of account? some institutions close the account right away, others restrict access, and some close the account after the third violation in a 12 month period. Help!
Thanks

An established standard for ex post monitoring (discussed here before and available in keyword searches) is that 3 violations in a rolling 12 month period is the most you can accept.

If 3 months were violated in the last 12 (and some say you get 3, some say the third strike is an out) the account may be closed or changed to a conforming account. This may be a NOW, if eligible, or a commercial DDA (or a method of returning excessive items presented if not using ex post reviews). But you can't allow it to keep its MMDA/savings attributes if these transactions may continue.

If you saw egregious violations in the first month or two, the same actions may be warranted. But overall, a letter reminding them of the restrictions, a second letter advising them of the requirements and what will happen and a third letter either converting the account (with TISA disclosures enclosed) or telling them it happens the next time, is appropriate.

Thanks for the info. I'm new to the site and appreciate your quick response.