Your CEO wants to charge a fee for declining an authorization?! WTH? Seriously, in what reality is he thinking this is OK? The bank can avoid any potential overdraft by simply declining the authorization. This is fee harvesting, no way around it. There is nothing justifiable about the fee, and it is a junk fee through and through.
Banks everywhere are dropping NSF fees everywhere, yet he wants to add an unfair NSF fee... a fee that is unexpected and unavoidable - on an event that has not even reached the level of being a transaction yet.
Consider this from the CFPB: "An overdraft fee can become a surprise fee when the customer doesn’t reasonably expect their actions to incur an overdraft fee. For instance, even if a person closely monitors their account balances and carefully manages their spending to avoid overdraft fees, they can easily incur penalties when financial institutions employ processes that are unintelligible or manipulative." Link
Direct him to the CFPBs writings on Junk Fees (here
), and document like crazy. If he pushes his way through, you need to show that it was against your advice and approval. He WILL end up with very bad consequences, no doubt about it.