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Benefit to Not Offering Overdraft Protection?

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Can a POS transaction be returned for insufficient funds and charged an overdraft fee if our bank does not offer overdraft protection? Would there be a benefit for a customer to "Opt In" if we continue to not offer overdraft protection?

by Randy Carey:

There is nothing to "opt-in" to if you don't have an overdraft protection product.


by Brian Crow:

VISA/Mastercard networks do not permit chargebacks if the merchant obtained a valid authorization. If the account is overdrawn at the time a debit card posts, but there were sufficient funds when the authorization occurred, the transaction must be posted to the account. A chargeback may only be filed to return a debit card transaction if the merchant forced a charge through on an overdrawn account without obtaining a valid authorization.

First published on 12/22/2019

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